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Senator Cabrera, Representative Wood, Senator Hwang, Representative Pavalock- D’Amato, and members of the Insurance and Real Estate Committee, thank you for the opportunity to submit testimony in opposition to House BILL 5054, AN ACT ADDRESSING HEALTH CARE AFFORDABILITY.
My name is Jodie Gillon, and I am the President and CEO of BioCT. BioCT is a leading voice for the life science industry in Connecticut. Our mission is to catalyze and accelerate growth in the life sciences with the goal of improving human health, by fostering a rich, innovative ecosystem and promoting Connecticut as a preferred destination for life science exploration and innovation. Our members include life and healthcare science companies, major research universities and other academic institutions, health centers, medical device developers and manufacturers and other partners. We educate, cultivate entrepreneurship, support the growth of life science companies and collaborate to ensure a sustainable, high-value life science and healthcare community that improves our quality of life and keeps the Connecticut economy strong. It is important to note that our members’ contributions in partnership with the state in responding to the COVID-19 pandemic, including the development of vaccines right here in the state.
On behalf of our organization, I respectfully oppose HB 5054. The bill establishes a Prescription Drug Advisory Board (“Board”) that will advise the Office of Health Strategy on issues related to prescription drug costs. The Board, comprised of five gubernatorial appointees, will conduct affordability reviews and provide “cost containment strategies” to OHS. The bill very closely mirrors laws in other states establishing price controls and while one could interpret the bill stopping just short of that step, it would appear that this legislative proposal is designed to establish a framework to do so in the future.
If price controls were imposed on products developed by biopharmaceutical companies, the incentive for these companies to develop life changing therapies and cures would be diminished. The impact of imposing any form of price controls will be felt by all the companies that make up Connecticut’s biopharmaceutical industry, their employees and patients that rely on drug therapies to improve and save their lives. Because the United States leads the world in drug development, U.S. patients have earlier and less restrictive access to new therapies. Policies like price controls will limit access for patients and slow the future development of cutting-edge medicines.
Implementing price controls diminishes the incentives for biopharmaceutical manufacturers to invest in and introduce new medicines. On average, it takes 10-15 years and $2.6 billion to research and develop a new medicine. Price controls could chill the research and development of new medicines by taking away the incentives that allow manufacturers to develop new medicines.
Extraordinary research is conducted in both large and small biopharmaceutical companies in our state by some of the most talented scientists in the world every day. Connecticut is also a sought-after venue for clinical trials of new drug therapies. According to AdvanceCT’s 2023 Life Sciences Sector Snapshot, the life sciences sector supports 27,800 jobs and $7.8 billion to the state GDP. When factoring in indirect jobs facilitated, that equates to a direct and indirect impact of more than 45,000 jobs in Connecticut and $13.8 billion in economic output annually. Price controls will not help to grow our biopharmaceutical industry; it would likely have the opposite impact.
If CT is seeking to compete regionally, nationally and globally to attract great investments in life sciences, policies like the one proposed in this bill would send a strong signal to the industry to consider looking elsewhere to find partners that better understand the contributions life sciences makes to both improve patients’ lives and to the state’s economy.
Thank you for your consideration of this testimony. Please oppose HB 5054.
Respectfully submitted,
Jodie Gillon
President & CEO, BioCT