Public Policy Alert


BioNJ President & CEO Debbie Hart Testifies in Opposition to S-977 
 
BioNJ President and CEO Debbie Hart testified today in opposition to S-977, legislation to impose price controls in New Jersey on pharmaceuticals, biologics and other health technologies developed with research supported by public (both State and federal) sources. BioNJ's testimony focused on the chilling impact of the legislation on innovation and research in the State. S-977 was heard before the New Jersey Senate Health, Human Services and Senior Citizens Committee. Please contact John Slotman at JSlotman@BioNJ.org or 609.890.3185 for more information.
Testimony Submitted by BioNJ RE: S-977 September 24, 2018

Mr. Chairman, Members of the Committee,

Thank you for the opportunity to testify today. I am Debbie Hart and I serve as the President and CEO of BioNJ - a trade association representing the full spectrum of our State's research-based life sciences sector. The industry creates 376,000 total jobs, generates $33 billion in wages and benefits, $6.9 billion in federal and $850 million in state taxes and nearly $105 billion in economic output in New Jersey. 

I am fortunate to have this job that I love, that gives me the opportunity to advocate for an industry that is creating new therapies and cures, and contributing to the economy in meaningful ways...right here in my beloved home state of New Jersey.
 
Most importantly I have the good fortune of supporting our companies as they help Patients around the world. It simply doesn't get any better than that.
 
However unfortunately there are times when that work is challenged on all three fronts. Today is one such occasion. And I appreciate the opportunity to be here to express our concerns. Hopefully these comments, along with those of my colleagues, will make a difference and New Jersey can be a place where those three fronts come together...along with Government...to create solutions where all can prosper.

Unfortunately S-977 would come at a high cost: to innovation, to New Jersey's economy and to Patients.

New Jersey has a proud tradition of innovation. Some of the greatest medical breakthroughs in human history have occurred right here in the Garden State. But we are under a very real threat. States in our region - such as Pennsylvania and Massachusetts - are aggressively implementing programs to attract our companies to their states. In fact, the recent report of the bi-partisan, bi-cameral New Jersey Biotechnology Task Force identified the necessity and urgency of strengthening the life sciences in the State of New Jersey. We must be diligent to ensure that this important integral cog in our State's economy is maintained and that measures such as some recently passed by the Legislature and signed by the Governor are supported and built upon.  Any measure that tarnishes New Jersey's reputation as being supportive to the industry hurts future innovation as well as our economy.

The cost of innovation is high. For each novel therapy that reaches the pipeline, there are many more that fall by the wayside. For those that are approved, it costs $2-3 billion on average and takes more than a decade to get to market.

Meanwhile, though, ironically the price paid by the consumer can be more heavily influenced by Pharmacy Benefits Managers and health plans than by the manufacturer.

Unfortunately, S-977 could have the unintended impact of stifling continued life sciences innovation in our State. Many of New Jersey's 3,200 life sciences organizations rely on early investment through public and private sources to help complete basic research. In fact, more than 4,000 New Jersey small businesses have received federal SBIR/STTR awards to support small business research. These small businesses could be in a State-supported incubator conducting much needed research in oncology, arthritis, mental health, Alzheimer's, and rare diseases.

At BioNJ, access for Patients who suffer from these debilitating diseases, remains our number one priority, and we should not move forward with legislation that could negatively impact that access.

S-977 would create a benchmark price, essentially price controls. Price controls, whether applied to drugs or other goods, historically do not work and have unintended negative consequences such as leading ultimately and ironically to higher prices and restricted access.   

Unfortunately, S-977 could create a system whereby New Jerseyans don't have the same access to treatments as Patients in surrounding states. The national drug supply chain means that a wholesaler, pharmacy benefits manager, group purchasing organization, or other purchaser of a biologic, pharmaceutical, or technology likely maintains inventory regardless of state lines. A system where supply for New Jersey Patients is inventoried differently than other states could impact product availability.

I know that those who would consider supporting this legislation want what I want. You want New Jersey to be a place where innovation is on fire, where our economy is booming and where new treatments are discovered and developed and delivered to the world. A place where Patients can access the treatments they need.
 
If that is to be so, the balance of innovation plus the economy plus Patients...simply cannot be a zero-sum game.
 
We would be pleased to work with the bill's sponsors to develop win-win strategies that ensure that innovation will continue, New Jersey's economy will thrive and, most importantly, that Patients will live to see a better day.
 
Thank you so much,
Debbie Hart
Thank You to Our Public Policy Sponsors



We Work for Health of New Jersey
If you would like information on how your organization can support our public policy efforts or how to develop an employee advocacy program, please contact John Slotman, BioNJ Vice President, Government Affairs, at  JSlotman@BioNJ.org

For information on BioNJ Membership, please contact Edie Esposito at EEsposito@BioNJ.org or visit www.BioNJ.org.