On February 27, Governor Phil Murphy delivered his budget proposal for the next fiscal year. His speech touched on continued efforts to achieve greater affordability, support the healthcare workforce, and expand access to education across the State. Notably, while the CBT Surtax that expired on January 1 was not proposed to be reinstated, the Governor is proposing a 2.5% Corporate Transit Fee — applied to companies generating over $10 million in profits — to be dedicated specifically to funding NJ Transit. This is distinct from the previous CBT surtax, as this fee would not sunset if enacted. The budget projects that $859 million would be derived from this fee and would likely be applicable to approximately 600-700 companies. The fee would be retroactive to January 1, 2024.

Additionally, the Governor proposed a $1 truck traffic excise fee imposed on warehouses across the state based on the number of trips that trucks make. The budget expects $10 million of revenue will be generated by this fee.

BioNJ will update upon the availability of the Governor’s Detailed Budget proposal.

To read the Governor’s Proposed FY2025 Budget in Brief, click here.

To read a statement from the Governor’s office, click here.

On February 29, a diverse group of Patients, Patient Advocates, clinicians and representatives of the life sciences sector joined together to celebrate Rare Disease Day in New Jersey.

Carolina Aldworth, Senior Medical Affairs Director in the Nephrology Division at Novartis, joined a panel of clinicians, Patients and policymakers to discuss their experiences and insights regarding the challenges and opportunities that the rare disease community confront.

BioNJ was thrilled to be able to support Rare Disease Day in New Jersey again this year and we look forward to continuing to participate in this crucial event next year.

Separately, the White House held a Rare Disease Forum on Rare Disease Day. To watch this forum, click here.

As we are firmly in New Jersey’s budget season, a bill focused on supporting manufacturing may be worth monitoring:

• S2656 (Greenstein/Testa) - Creates "Manufacturing Reboot Program" in EDA to provide financial assistance to certain manufacturing businesses; makes $10 million appropriation to EDA.

In addition, the following bills associated with medical billing and transparency have been introduced:

• A3858 (Conaway) - Requires collection of data by health insurers regarding health insurance claims and decisions made using automated utilization management systems.
• S2795 (Turner) / A3860 (Reynolds-Jackson/DeAngelo/Verrelli) - Establishes certain medical billing requirements concerning specific nature of charges or expenses for health care services.
•  S2806 (Turner/Ruiz) / A3861 (Reynolds-Jackson/DeAngelo/Verrelli/ Conaway) - "Louisa Carman Medical Debt Relief Act."

While a few committees will meet tomorrow followed by more opportunities for committee hearings, and voting sessions will take place in a few weeks, budget hearings will begin for the next several weeks as the Legislature considers the Governor’s proposed FY2025 budget.

In support of this legislation, entitled the “Ensuring Pathways to Innovative Cures Act”, which would achieve parity in the length of time that small and large molecule therapeutics are provided prior to being subject to the pricing provisions of the Inflation Reduction Act by setting both at 13 years, BioNJ is preparing a letter to be shared with the New Jersey Congressional Delegation.

If you would like to sign on to this letter, please contact Ian McLaughlin, Vice President of Government Affairs: IMcLaughlin@bionj.org.



For a statement from the bill’s sponsor, Representative Gregory Murphy (R-NC), click here.

The World Trade Organization (WTO) met for their 13th Ministerial Conference in Abu Dhabi, and while there were efforts to support an expansion of the TRIPS COVID-19 vaccine waiver to include COVID-19 diagnostics and therapeutics, the Ministers did not call for a reopening of the original TRIPS agreement — nor a promotion of tech transfer or limitation of intellectual property rights for climate technologies.

Following the oral testimony that Debbie Hart, President & CEO of BioNJ, provided before the International Trade Commission — as well as ongoing engagement with the New Jersey congressional delegation — BioNJ released this statement upon the decision of the WTO:

"BioNJ is pleased that the World Trade Organization did not expand the TRIPS waiver beyond its initial application to vaccines developed to defend against COVID-19. Given the crucial role that strong intellectual property protections play in the ability for life sciences companies to develop new and more effective medicines, and innovation across the life sciences ecosystem, it is encouraging that this expansion was not adopted. We look forward to continued collaboration with policymakers at the State and federal levels to pursue policies that will effectively ensure that every Patient has access to the treatments they need when they need them."

While this is welcome news, BioNJ will remain vigilant and continue to monitor for any developments that may represent threats to the strong and reliable intellectual property framework in the United States.

For a statement from the Biotechnology Innovation Organization, click here.

For coverage of the listening session in STAT News, click here.

Last week, it was reported that, in pursuit of confronting drug costs, the White House was to hold a listening session on Monday focused on pharmacy benefit managers (PBMs). The session began with comments by the Administration’s Director of the Domestic Policy Council, Neera Tanden, focused on provisions of the Inflation Reduction Act. Opening statements then progressed to PBMs, independent pharmacies and formularies. Some comments very clearly emphasized the ongoing deleterious effects that the business practices of PBMs have on Patient access to medications.

The panel included Secretary Becerra of the Department of Health and Human Services; Lina Khan, Chair of the Federal Trade Commission; Andy Beshear, former Governor of Kentucky; Mark Cuban, Co-Founder of Cost Plus Drug Company; and other leaders of various nodes along the healthcare landscape.

To watch the White House listening session, click here.

For comments posted ahead of the listening session from the Biotechnology Innovation Organization (BIO), click here.

Last week, the leaders of both chambers of Congress announced an agreement on a continuing resolution to extend funding for about another week to avoid a government shutdown. Now, they have until March 8 to strike a deal on part of the government funding while negotiations continue for the rest.

Given the potential impact that a failure to fund the government would have on the Food and Drug Administration and other agencies that are crucial to the ability for the life sciences sector to bring innovations to Patients, we are hopeful that a more durable agreement is reached in the near future.

To read a statement from the Speaker of the House, click here.

Today, the Senate Homeland Security & Government Affairs Committee is holding a hearing that is expected to include mark-up of the BIOSECURE Act.

Tomorrow, the House Select Committee on the Chinese Community Party will hold a hearing, entitled “Growing Stakes: The Bioeconomy and American National Security”, which may include discussion of the BIOSECURE Act as well. Rep. Mikie Sherrill (NJ-11) and Rep Andy Kim (NJ-3) serve on the Select Committee, and the Chair of the Select Committee, Rep. Mike Gallagher (R-WI) introduced the BIOSECURE Act in the House. Three witnesses have been invited to attend:

• Dr. Jason Kelly: Chief Executive Officer of Ginkgo Bioworks
• Dr. Tara O’Toole: Senior Fellow and Former Executive Vice President of In-Q-Tel
• Dr. Charles Clancy: Chief Technology Officer at MITRE

On March 20, from 3:00PM – 4:00PM, We Work for Health will hold a conversation focused on the impact that policy decisions have on the sector, as well as opportunities to help inform the Congressional Budget Office as it reviews future legislation. Speakers include:

• Doug Holtz-Eakin, President of American Action Forum and former CBO Director
• Graham Cookson, Chief Executive of Office of Health Economics (OHE)
• Duane Schulthess, CEO of Vital Transformation
• Ken Thorpe, Robert W. Woodruff Professor at the Department of Health Policy and Management at Emory University

To register for the event, click here.

On Monday, the Ranking Member of the Senate Health, Education, Labor and Pensions (HELP) Committee, Senator Bill Cassidy (R-LA) — along with 16 Republican colleagues — shared their concerns to the National Institutes of Health following President Biden’s proposal to support the seizure of drug patents under the Bayh-Dole Act.

BioNJ will continue to convey to policymakers the ramifications on the life sciences sector that this proposed misuse of the March-In provisions of the Bayh-Dole Act would have, as well the diminution of Patient access that would result if it were implemented.

To read the letter from the Senate HELP Ranking Member, click here.

Last week, Senate Minority Leader Mitch McConnell (R-KY) announced that he will step down as Republican leader in the Senate in November of this year. For reporting on this announcement from CNBC, click here.

Tomorrow, President Biden will deliver this year’s State of the Union Address at 9:00PM. For options to watch the speech, click here.

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 2024. 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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