Last Thursday, May 11, two bills in the Governor’s prescription drug legislative package were reported by the Senate Budget & Appropriations Committee (SBA), with both bills being moved along party-line votes.

Among other changes, S1615, which would require data reporting associated with the prescription drug supply chain, was amended to eliminate advance notification requirements prior to launch and price increases, establish a Drug Affordability Council with diminished autonomy and authority rather than an independent Board, enable manufacturers to simply report national data characterizing their supply chains to the Council rather than state-specific data so long as companies demonstrate that reporting state-specific data is infeasible to the Council and modify assessment and penalty provisions.

BioNJ, along with our coalition partners, submitted slips on S1615 focused on increasing the stringency of confidentiality provisions. BioNJ is also pursuing modifications regarding the permissiveness of companies to be able to provide nationwide data in lieu of State data when necessary, and other minor changes.

In addition, S1616, which addresses the business practices of pharmacy benefit managers (PBMs), moved through SBA. S1616 was not amended to match changes that were made to its Assembly counterpart, A536/2841. Among the differences between the bills from the respective chambers is a requirement that rebates be passed directly to the covered person only in the Assembly version which remains absent from the version that moved through SBA last week. This provision would render this legislation far better for Patients by reducing the costs inflated by PBMs that they confront. BioNJ will continue to monitor and advocate on behalf of the State’s life sciences industry.



In the Assembly, both bills are currently referred to the Appropriations Committee.

In addition to the prescription drug bills, S3737 was posted for discussion in SBA last Thursday. This was the first time that the bill has been heard in either chamber, and discussion commenced with an explanation and supportive testimony by an official in the New Jersey Division of Taxation. While there was some opposition conveyed by a few groups, the bill received significant support from a variety of entities throughout the business and finance communities. Among the bill’s provisions are measures that positively address global intangible low-taxed income (GILTI) and decouple New Jersey’s tax policy from federal IRC Section 174, which requires companies to amortize R&D expenses over five years rather than deducting in the years in which they are incurred.

BioNJ collaborated with tax experts who submitted testimony in support of the bill while highlighting an opportunity to improve its provisions affecting Section 174 by more clearly stipulating that New Jersey will not conform to IRC Section 174 or incorporate provisions that would explicitly allow for the sale and purchase of net operating losses (NOLs) each year.

To read the testimony that was submitted for S3737, click here.

We look forward to continuing to work with the Legislature to ensure that this beneficial bill effectively accomplishes the fundamental goals of its provisions and will provide updates as it begins to move through both chambers.

In addition to the bills described above, there are a handful of additional bills that are worth monitoring:

• S468 (Scutari/Beach) / A165 (Carter/Kennedy/Timberlake) - Establishes "New Jersey STEM Scholars Grant Pilot Program" in Department of Education.
• S553 (Zwicker) / A4238 (Conaway) - Adds technology transfer duties to New Jersey Commission on Science, Innovation and Technology.
• S3402 (Zwicker/Singer) / A5037 (Tully) - Allows Commission on Science, Innovation and Technology to provide grants to employees of public institutions of higher education and their companies.
• S3604 (Madden) / A5212 (Murphy/Stanley) - Authorizes use of healthcare platforms providing discounted prices for payment of prescription and non-prescription drugs or devices and for telehealth and telemedicine services.
• S3757 (Singleton) - Permits deduction of 20 percent for qualified business income for certain individuals as owners of pass-through entities under gross income tax and corporation business tax.
• S3691 (Polistina/Zwicker) / A4693 (Tully/Chaparro/Carter/Wimberly) - Establishes "Scientific Conference Grant Program"; appropriates $250,000.
• Posted in the Assembly Appropriations Committee on 5/18 at 1:00 p.m.

The Legislature will continue budget hearings through the end of May and continue with regular hearings through the end of June.

The Federal Government has been similarly busy over the past few weeks. Legislation addressing Section 174, S.866/H.R.2673, which would restore the ability to deduct R&D expenses in the years in which they are incurred, continues to garner additional support in both congressional chambers, with the Senate and House reaching 29 and 87 sponsors, respectively. We appreciate the support of many members of the NJ congressional delegation and will continue to highlight these bills and advocate for additional co-sponsorship.

To read a statement from Senator Todd Young (R-PA) on this legislation, click here.

In addition, there have been a variety of hearings in both the House and Senate addressing different aspects of the life sciences and healthcare landscape. Recent and upcoming hearings include:

• The Health Subcommittee on Ways & Means held a hearing on May 10 entitled “Examining Policies that Impact Innovation and Patient Access.”
• The Senate Committee on Health, Education, Labor and Pensions (HELP) held a hearing entitled “The Need to Make Insulin Affordable for All Americans” that included testimony from the CEOs of several large pharmaceutical companies, as well as the senior leadership of the three largest PBMs (CVS Health, Express Scripts, and OptumRx).
• Senate HELP also completed the mark-up of S.1067, S.1114, S.1214, and S.1339 at a hearing on May 11, which encompassed reforms associated with generic medications, orphan drugs, and the bipartisan “The Pharmacy Benefit Manager Reform Act.”
• The Senate Committee on Finance held a hearing entitled “Cross-border Rx: Pharmaceutical Manufacturers and U.S. International Tax Policy” on May 11, along with the release of the findings of an investigation on the policy space by the Committee Chair, Senator Wyden (OR-D).
• Today at 10:00 a.m., the Senate HELP Committee is holding a hearing entitled “A Crisis in Mental Health and Substance Use Disorder Care: Closing Gaps in Access by Bringing Care and Prevention to Communities.”
• Today at 2:00 p.m., the Health Subcommittee of the House Ways and Means Committee is holding a hearing entitled “Health Subcommittee on Why Health Care is Unaffordable: Anticompetitive and Consolidated Markets.” At the request of a member of the New Jersey delegation, BioNJ provided background information on the extent of vertical integration across insurers and PBMs.

Beyond these and other hearings, we look forward to the outcome of debt ceiling negotiations that will hopefully conclude by the beginning of next week, according to recent press reports. 

BioNJ is the voice of New Jersey’s life sciences sector in Trenton and Washington. BioNJ’s Public Policy Support Series sponsorship opportunities are now available for 2023. Help ensure BioNJ continues to deliver our message of improved Patient access and enhanced innovation through a Public Policy Support Series Sponsorship.  

Click here for more information.

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