BIO expresses concerns with Medical Innovation Act.
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Press Release Summary:
Introduced by Senator Elizabeth Warren (D-MA), Medical Innovation Act proposes to increase funding for the National Institutes of Health by creating a new statutory scheme that would impose fee on biopharmaceutical companies working on critical treatments and cures for patients. According to BIO President and CEO, Jim Greenwood, BIO supports increased funding for NIH, but has serious concerns about the impact this legislation would have on research and development.
Original Press Release:
BIO Expresses Concerns with Medical Innovation Act
WASHINGTON -- Today, the Biotechnology Industry Organization (BIO) expressed serious concern with the Medical Innovation Act introduced by Senator Elizabeth Warren (D-MA). The legislation proposes to increase funding for the National Institutes of Health (NIH) by creating a new statutory scheme that would impose a fee on biopharmaceutical companies working on critical treatments and cures for patients.
“The best approach is for the Congress to work together on a bipartisan basis to increase appropriations for NIH. These vital institutes need to be better funded – this is something on which we all can agree.”
The following can be attributed to Jim Greenwood, President and CEO of BIO:
“While we greatly support the idea of increased funding for NIH, we have serious concerns about the impact that this legislation would have on the research and development of new treatments and cures.
“The legislation seeks to impose an ‘innovation fee’ on drug developers that enter into settlement agreements with the government. In actuality, this legislation would impose a tax on innovation, which would inhibit and delay medical innovation and, in effect, harm those patients waiting for cures.
“There are many legitimate reasons a person or a company would settle a case with the government, or any other party. Settlements avoid future litigation expenses, ensure predictability, reduce disruption and provide finality. Settlements do not necessarily mean that anyone did anything illegal or operated in bad faith – and thus there is no logical basis upon which to impose a fine or fee just because of the act of settling with the government.
“A settlement agreement can be an important method of resolving a case with the government, rather than incentivizing the waste of additional governmental and private sector resources resulting from avoidable litigation. Unnecessary litigation means fewer resources for manufacturers to devote to investing in the research and development of new therapies intended to better treat or cure patients suffering from disease.
“Further, by tying the tax to prior NIH involvement in the drug discovery or development process, the bill would create a chilling effect on NIH-industry collaborations at the very moment in time when Congress and the Administration are trying to increase such collaborations to help patients suffering from unmet medical needs.
“The best approach is for the Congress to work together on a bipartisan basis to increase appropriations for NIH. These vital institutes need to be better funded – this is something on which we all can agree.”
For more information on BIO and the biotechnology industry, please visit www.bio.org.
About BIO
BIO is the world's largest trade association representing biotechnology companies, academic institutions, state biotechnology centers and related organizations across the United States and in more than 30 other nations. BIO members are involved in the research and development of innovative healthcare, agricultural, industrial and environmental biotechnology products. BIO also produces the BIO International Convention, the world’s largest gathering of the biotechnology industry, along with industry-leading investor and partnering meetings held around the world. BIOtechNOW is BIO's blog chronicling “innovations transforming our world” and the BIO Newsletter is the organization’s bi-weekly email newsletter. Subscribe to the BIO Newsletter.
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Biotechnology Industry Organization (BIO)
Tracy Cooley, APR
202-312-9274
Web: www.bio.org
Blog: www.biotech-now.org
Twitter: @IAmBiotech
