CLS Statement Following Announcement of Additional Drugs Subject to Government Price Negotiation

FOR IMMEDIATE RELEASE: Jan 17, 2024

South San Francisco, CA — California Life Sciences (CLS) today released the following statement in regard to the Biden Administration’s announcement of 15 additional medicines being selected for government price setting:  

“Today’s announcement by the Centers for Medicare and Medicaid Services (CMS) is another step in this misdirected pricing scheme that will harm seniors’ access to important medicines and irreversibly harm the development of future treatments and cures that many patients are desperately seeking. The Agency has refused to prioritize transparency of the process and stakeholders’ feedback, continuing to before fully to press forward the government price setting program without understanding the impact it will have on every patient, researcher, investor, and company in the sector. 

CLS is proud to represent organizations across the entire life sciences ecosystem whose mission is to improve the lives of patients by developing the treatments of the future.  The impact of the Inflation Reduction Act’s (IRA) harm for entrepreneurs and small biotech’s who face declining investment and rising costs is already being felt. In fact, investment into small molecule medicines—like those that will help people living with mental illnesses, rare diseases, and cancer—has seen a 70% decrease since the passage of the IRA.

For this reason, we encourage Congress to change course and fix pieces of the IRA that stifle innovation in these areas. Congress must also curb practices by insurers and pharmacy benefit managers that serve to inflate costs within the healthcare delivery system, at times marking up the cost of medicines by more than 1,000%. Addressing these issues will protect patient access to current and future medicines along with preserving America’s leading role in life sciences innovation.”  

About California Life Sciences
California Life Sciences (CLS) is the state’s most influential and impactful life sciences membership organization, advocating for the sector and its diverse innovation pipeline. For more than 30 years, CLS has served the community by supporting companies of all sizes, from early-stage innovators and startups to established industry leaders in the fields of biotechnology, pharmaceuticals, and medical technology.

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For media inquiries, please contact:
Katie Kiss
Senior Director, Marketing
California Life Sciences
[email protected]