Public Policy Briefing
October 2017
A Cure for New Jersey's Economy?   
Boosting New Jersey's Life Sciences Ecosystem  
 
In less than four weeks, New Jersey will elect a new Governor.  The Governor-elect will face numerous challenges upon taking office, many dealing with New Jersey's significant financial issues . A recent survey by the Mercatus Center at George Mason University rated New Jersey as the worst in the country in its annual fiscal ranking, based on our cash flow, long-term debts, the ability to withstand downturns and post-employment benefit obligations.

Our economic issues won't be solved with any one strategy , but we at BioNJ believe that strengthening the life sciences sector could go a long way in improving our economy. The life sciences industry has grown steadily in New Jersey, with most of the growth in small biotech companies. Today we 're ranked as the 3rd top biopharma cluster in the country, and the industry contributes $47.5 billion to the State's economy. Growing the industry makes sense for New Jersey. Here's how we can do that:
  • Incentivize startups and reward entrepreneurs. Competition from nearby states and from the nation's leading clusters is strong. We need to encourage biotech businesses to start here and to remain here as they grow. Financial incentives, including increased angel investor tax credits and tax credits tied to job creation, need to be linked to a founder-friendly culture that attracts and encourages startups.
  • Expand clinical trials. Clinical trials in New Jersey support 3,750 jobs on an annual basis, with a GDP impact of $337 million. Growing this segment of the industry will help provide cures and jobs for New Jerseyans.
  • Invest in education. Higher education funding for programs that support public/private research ventures and STEM education will attract more New Jersey high school graduates to remain in state for college and offer entrepreneurs new opportunities for collaboration.
  • Expand workforce training. Business depends on educated, trained workers. The life sciences industry requires not only researchers and clinicians but also data, IT, supply chain experts and a host of support workers. Expanded programs at vocational technical schools and county colleges will provide jobs for New Jerseyans and fill industry needs.
  • Create a state-of-the-art infrastructure. New Jersey's infrastructure is in critical condition. We need to think beyond repair to transformation so that it becomes a key business attraction tool.
BioNJ will weigh in in more detail on these critical topic s in the coming weeks and as we work with the new Governor and Administration toward our shared goals of stimulating and supporting innovation, improving and saving lives and lowering the hurdles of healthcare advancements for society.
New Jersey's 2017 Gubernatorial Election
 
Since the continued support of New Jersey's life sciences sector is key to New Jersey's economy and our Governor plays such a key role on that front, BioNJ asked New Jersey gubernatorial candidates Kim Guadagno (R) and Phil Murphy (D) for their views on the industry and its place in the economy as well as economic incentives to attract business, their ideas on creating public private partnerships and maintaining an educated workforce, as well as ways to support the life sciences industry.  
 
Click here for the candidates' responses to our questions.
Please note that BioNJ does not endorse political candidates for any office. 
What BioNJ is Watching for You Now

Washington
Senate HELP Hearing on The Cost of Prescription Drugs
On October 19, the Senate Committee on Health, Education, Labor and Pensions (HELP) will hold a hearing entitled " The Cost of Prescription Drugs: How the Drug Delivery System Affects What Patients Pay, Part II". This is the committee's second hearing in a three-part series focused on drug pricing, with the first hearing held in June. The witnesses include:
  • Lori M. Reilly, Executive Vice President, Policy, Research & Membership, Pharmaceutical Research and Manufacturers of America (PhRMA), Washington, D.C.
  • Chester "Chip" Davis, Jr., President and Chief Executive Officer, Association for Accessible Medicines, Washington, D.C.
  • Elizabeth A. Gallenagh, Senior Vice President Government Affairs and General Counsel, Healthcare Distribution Alliance, Arlington, VA
  • Mark Merritt, President and Chief Executive Officer, Pharmaceutical Care Management Association, Washington, D.C.
  • Thomas E. Menighan, MBA, ScD(Hon.), FAPhA, Executive Director and Chief Executive Officer, American Pharmacists Association (APA), Washington, D.C.
We will monitor this hearing through BIO and will send a recap.

CHIP Reauthorization
Both the Senate and House are debating bills to reauthorize CHIP funding after the September 30 deadline for reauthorization was missed. This is the first time since CHIP was established in 1997 that Congress has failed to reauthorize the program. Missing the deadline means an estimated 11 states will run out of federal CHIP money by the end of this year, and 32 states are expected to run out of money by March 2018, according to  a study by the Kaiser Family Foundation. New Jersey funding is anticipated to last until 3rd quarter 2018, but the budget assumes continued Federal funding.  

New Jersey
Proposed Rule Change on Physician Gift Ban
BioNJ will testify at a public hearing on Thursday, October 17 on proposed changes to New Jersey's physician gift ban. BioNJ is working closely with BIO, PhRMA and HINJ, as well as numerous trade and physician associations across New Jersey, to provide examples of the devastating impact this proposal would have. If you have specific examples of how this would impact your business, please contact BioNJ, VP of Government Affairs, Rebecca Perkins at [email protected] or 908-218-2194.

Assembly/Senate Manufacturing Caucus
A bipartisan Senate and Assembly Manufacturing Caucus chaired by Sen. Bob Gordon (a BioNJ Legislative Champion) held its first meeting in September. BioNJ plans to provide testimony at an upcoming hearing.

Special Events
BioNJ Trek to the Beltway: Thursday, October 26
BioNJ will host a breakfast reception for the New Jersey Congressional Delegation on Thursday, Octover 26 in the Rayburn House Office Building, 45 Independence Ave SW, Washington, DC 20515. Later in the morning, BioNJ will host a meeting at BIO for BioNJ Member Company Washington staff. For more information, please contact Rebecca Perkins at [email protected] or 908-419-2194.
 
BioNJ Legislative Holiday Reception hosted by Celgene: Thursday, November 30
This event is invitation only. For more information, please contact Rebecca Perkins at [email protected] or 908-419-2194.

BioNJ Working Closely with Washington and Trenton
BioNJ continues to meet and communicate regularly with our elected and appointed government officials both in New Jersey and in Washington. If you would like to schedule a facility tour or meet with your Congressional representative or your New Jersey legislators, we at BioNJ are happy to work with you to facilitate. BioNJ Member participation is the key to our successful public policy program -- thank you for your support! 

Thank You to Our Public Policy Sponsors



We Work for Health of New Jersey
If your company would like information on how to support our public policy efforts or how to develop an employee advocacy program, please contact Rebecca Perkins, BioNJ Vice President, Government Affairs, at  [email protected]. For more information on BioNJ, visit www.BioNJ.org.