Bioscience Legislation Off to a Familiar Start 

As the 2024 legislative session gains momentum, there are 27 biopharma-related bills under consideration.

Similar to recent session, legislation proposed thus far focuses on research and development tax policy, drug pricing transparency and economic development measure to grow the life sciences in Connecticut. 

More bills are likely on the way, many are still concepts, and the public hearing phase of the session has just begun.

We will keep you updated as bill language takes shape and our public hearing testimony is drafted. 

R&D Tax Credits

Three bills involve revisions to Connecticut’s research and development tax credits:

• SB 157 establishes a 6% research and development tax credit and makes it available to LLCs and partnerships.
• HB 5021 increases, by an unspecified amount, the R&D tax credit for biotech companies and is sponsored by Rep. Holly Cheeseman (R-Niantic).
• HB 5065 increases, by an unspecified amount, the R&D tax credit for all taxpayers and is sponsored by Rep. David Yaccarino (R-North Haven). 

Sales Registration, Disclosures

SB 202 requires biopharma manufacturers who employ/compensate sales representatives to register annually as a “pharmaceutical marketing firm” and identify all “pharmaceutical representatives” related to the firm. 

Such representatives, including anyone who promotes or provides information regarding a drug, would be required to disclose the “list price” of any drug for which he/she provides information. 

SB 241 requires entities that purchase drugs pursuant to the federal 340B drug discount program disclose the aggregate: (1) acquisition costs for 340B-obtained prescription drugs; (2) the payment amount received for 340B-obtained drugs and dispersed to patients; and (3), payments made to pharmacies under the 340B program. 

HB 5054 establishes a five-member Prescription Drug Affordability Board (all members appointed by the governor) and a 13-member Cost Growth Benchmark Oversight Commission.

Both entities would be housed within the Office of Health Strategy. Neither would explicitly include among its members a representative of the biopharma industry.

The Affordability Board would be charged with studying and identifying strategies to reduce costs to consumers and monitoring prescription drug prices. Its first annual report would be due Dec. 31, 2025.

The Oversight Commission would advise OHS on all aspects of healthcare quality and benchmarks and, among other actions, could require healthcare entities that exceed benchmarks to file a “performance improvement plan.” 

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Paul Pescatello is the executive director of CBIA’s Bioscience Growth Council and chair of We Work for Health Connecticut. Follow him on Twitter @CTBio.