Successful Legislative Session for Biopharma

Scoring how well or poorly an industry group fared in a legislative session is usually a difficult task.

Some problematic, counterproductive bills make it over the finish line, and some very worthwhile, seemingly necessary bills somehow become waylaid in the legislative process.

The 2024 Connecticut General Assembly session was, however, on just about every front, a striking success for biopharma.

The session began well—fewer bills that would be potentially harmful to the industry were introduced.

The parliamentary rules of the Connecticut General Assembly are such that any legislator can introduce a bill and usually obtain a public hearing even if the legislation has little chance of garnering committee support, much less full passage.

Economic Development

Bills that are fundamentally flawed but can be used to great political effect, such as those that would impose price controls on medicine manufacturers, fall into this category.

The Connecticut Bioscience Growth Council has consistently worked to educate legislators on how counterproductive such bills are to the state’s economic development efforts to draw biotech companies into the state and encourage our existing cluster of companies to expand and grow here.

The biopharma bill that drew the greatest attention this session was SB 8, An Act Concerning Drug Affordability.

In 2024, our efforts met with much success, with very little legislative time expended on bills that undermine the industry and with little hope of passage.

The biopharma bill that drew the greatest attention this session was SB 8, An Act Concerning Drug Affordability.

The Bioscience Growth Council shared the goal of the bill, which at its core was to lower the ever-rising cost of healthcare.

Drug Pricing

Unfortunately, SB 8 focused mostly on drug pricing and its policy prescriptions undermine new medicine innovation, create drug shortages, and cause biotech companies to look beyond Connecticut to start or expand operations.

SB 8 had three major components: the establishment of a complex set of regulatory oversight bodies; expansion of the federal 340B drug discount program; and Canadian drug importation.

The Bioscience Growth Council worked to educate legislators that SB 8’s Prescription Drug Affordability Board and Prescription Drug Affordability Stakeholder Council were duplicative of several other regulatory bodies and were, essentially, an attempt to create state-imposed price controls.

We underscored that economists from across the political spectrum agree that price controls stifle innovation, cause shortages, and ultimately lead to price increases.

Economists agree that price controls stifle innovation, cause shortages, and ultimately lead to price increases.

The biopharma industry has been a stalwart supporter of the 340B drug discount program. The program’s aim is to provide discounted drugs to nonprofits in assisting them in their delivery of medical care to the uninsured and underserved.

Unfortunately, the 340B program has been abused by some middlemen in the healthcare system whereby they buy discounted drugs and bill payers for a higher or even full list price.

Often 340B savings do not go to the intended beneficiaries. The Bioscience Growth Council supports linking 340B discounts to the patient who needs and deserves them.

SB 8 went in the opposite direction and therefore we opposed this provision.

Canadian Drug Imports

Finally, SB 8 included another attempt to import drugs from Canada. Such importation schemes are well known to be unworkable.

The Canadian government has sent representatives to Connecticut to testify that they will discourage export of drugs from the country.

Canada has sent representatives to Connecticut to testify that they will discourage export of drugs from the country.

Canada has barely enough supply of medicines to meet its own citizens’ needs, much less to allow export out of Canada.

In addition, SB 8 did not fully address concerns regarding drug safety.

By the close of the session, working with our industry and organizational partners, we were successful in having SB 8 put aside.

Whole Genome Sequencing

A particularly positive outcome of the 2024 legislative session was the passage of two bills: SB 307, An Act Concerning Medicaid Coverage of Biomarker Testing; and HB 5367, An Act Concerning Medicaid Coverage of Rapid Whole Genome Sequencing for Critically Ill Infants.

The Bioscience Growth Council advocated vigorously for this legislation.

Each bill expands Medicaid coverage for advanced diagnostic testing techniques. Biomarker testing and rapid whole genome sequencing are ways to quickly and definitively identify disease and thereby allow early and effective treatment.

Both bills will help patients avoid unnecessary tests and treatments and, in the process, lower healthcare costs.

Global Entrepreneurship Program

CBIA and the Bioscience Growth Council worked successfully to build support for SB 250, An Act Establishing the Global Entrepreneur in Residence Program.

The bill was spearheaded by Commerce Committee co-chairs Sen. Joan Hartley (D-Waterbury) and Rep. Steve Meskers (D-Greenwich), who deserve much credit for working to bring it across the finish line.

The program incentivizes foreign entrepreneurs to start up and raise funds for high-tech businesses in Connecticut.

The bill tasks the Department of Economic and Community Development with establishing a three-year pilot program to attract and retain foreign entrepreneurs to Connecticut.

Working to expand the availability of federal H-1B visas, the program will incentivize foreign entrepreneurs to start up and raise funds for high-tech businesses in Connecticut.

Once rooted here, it is likely these companies will grow and expand here, creating many new job opportunities for Connecticut residents.

NOL Carry Forward Period

HB 5524, An Act Authorizing and Adjusting Bonds of the State and Concerning Provisions Related to State and Municipal Tax Administration, General Government, and School Building Projects, allows net operating losses to be carried forward for up to 30 years.

Originally included in SB 443, this legislation makes Connecticut more competitive with many other states which have extended their net operating loss carry forward periods.

The net operating loss extension is extremely important to the biotech and tech sectors.

The net operating loss extension is extremely important to the biotech and tech sectors Connecticut has worked to nurture and grow in the state.

Biotech especially operates for years on cash infusions from investors, with little income as they conduct costly research and development for new medicines.

They tend to establish operations and grow in states which allow them full use of the losses they incur once they have revenue and profit-generating products on the market.

Other Bills

At the outset of the session over 50 biopharma bills were under consideration by the General Assembly. Almost all involved public hearings.

The Bioscience Growth Council and CBIA testified and, advocated for and in opposition to many of the bills.

Of particular note were SB 2, An Act Concerning Artificial Intelligence, and SB 292, An Act Concerning the Use of PFAS in Certain Products.

The AI bill went through many drafts and ultimately was not passed by the legislature.

Wise, effective policies like rapid whole genome sequencing, biomarker testing, and global entrepreneurship made it over the finish line.

In the process, however, CBIA was successful in obtaining an exemption for most medicine and medical device research and development.

SB 292 was passed by the General Assembly and included an exemption for medical devices and medicine-related materials.

The 2024 General Assembly session was a significant success for the biopharma sector.

Wise, effective policies like rapid whole genome sequencing, biomarker testing, and global entrepreneurship made it over the finish line.

Others, well intentioned but not yet fully vetted, were put aside.

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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 X @CTBio.