The proposed DRUG Act will spur innovation in biotech, and reduce costs

As the vibrant biotechnology and life sciences industry in Virginia flourishes, our mission at the Virginia Biotechnology Association remains steadfast: to promote innovation and growth through strengthened advocacy, talent attraction, development and retention while advancing the next generation of leaders.

We succeed because Virginia encourages risk-takers to develop new health care and technology treatments.

Virginia’s biotechnology sector contributes more than $8 billion to our economy. Yet, we could do more. We have seen Pharmacy Benefit Managers (PBMs) pursue opaque and often anti-competitive practices that impede additional investment into the biopharmaceutical sector.

We urge those in Washington to reform PBM practices, supporting legislation like the Delinking Revenue from Unfair Gouging (DRUG) Act, introduced by Virginia Congresswoman Abigail Spanberger. This reform protects the interests of all Virginians and the innovative spirit that defines our industry.

The DRUG Act realigns PBMs’ incentives that favor higher-priced medicines. Congress can reform a system so it supports innovation while lowering the cost of prescription drugs for patients.

PBM reform, like the DRUG Act, spurs competition, making the market work as it should — by basing PBM fees on the services they provide rather than the price of medicines. We shouldn’t reward behaviors that place profits over patients.

The positive ripple effects of DRUG Act-inspired PBM reform would extend beyond the biotech sector, generating savings for employers and plan sponsors. By incentivizing cost-effective medications, Virginians will have access to more cost-effective treatments for patients, employers and plan sponsors. Most importantly, patients will benefit from expanded coverage of less expensive medicines.

Congresswoman Spanberger should be applauded for introducing the bipartisan DRUG Act to support real reform of PBMs to help lower prescription drug costs.

The Virginia Biotechnology Association is committed to championing our innovators by supporting policies that create a healthier and more prosperous future. We urge our delegation to support this critical reform.

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