Yesterday, following the swearing in of the members of the 221st State Legislative session, the Governor delivered his State of the State Address. Following a touching tribute to the late Lt. Governor, Sheila Oliver, the Governor discussed a variety of past and planned policies, including initiatives devoted to addressing tax policy and confronting affordability challenges. Among the initiatives described in his speech, Governor Murphy intends to address medical debt and transparency, naming requested legislation the "Louisa Carman Medical Debt Relief Act" after a former member of the administration's Office of Health Care Affordability and Transparency who was lost in a car accident early this year.

Additionally, the Governor announced an "AI Moonshot." A component of this effort includes the State's Chief Innovation Officer, Beth Noveck, leading an initiative to address policy associated with artificial intelligence (AI) as the State's first-ever Chief AI Strategist. Given the rapidly growing role that AI plays in the life sciences, we look forward to collaborating with the administration on this important convergence of policy and opportunity. 

BioNJ looks forward to continuing to work with the Governor and his administration on these efforts—and, as he articulated, "seize every opportunity" to foster a thriving life sciences sector throughout the State. Most importantly, we stand ready to collaborate and ensure that every Patient receives every medication they need right when they need it to be sure that New Jersey lives up to its reputation of being, as the Governor noted, the "Medicine Chest to the World".

To watch the Governor’s State of the State Address, click here.

On Tuesday, members of the New State legislative session were sworn in, including an historic 37 new occupants of seats between the Senate and Assembly. As a reminder, following the elections last November, the Democrats’ majority in the Senate was maintained at the same margin while the party’s majority in the Assembly expanded by six seats, resulting in a 25-15 majority in the Senate and 52-28 in the Assembly. For a more in-depth discussion of the outcomes of last year’s election, click here.

Additionally, the Speaker of the State Assembly, Asm. Craig Coughlin—beginning what is now the longest term as Speaker in the State's history—announced several changes to the body's committee structure and leadership. Highlights include Asm. Roy Freiman (D-LD16) taking over leadership of the Financial Institutions and Insurance Committee and Asw. Ellen Park (D-LD37) taking over leadership of the Judiciary Committee as both former committee chairs join the Senate. Asm. Sampson (D-LD31) is now Chair of the Consumer Affairs Committee. Finally, what were formerly two committees have now been condensed into a single Aging & Human Services Committee, which will be chaired by Asw. Shavonda Sumter (D-LD35). For more coverage on these changes in the Globe, click here.

BioNJ looks forward to continuing to work with members of the Legislature to ensure that the innovative life sciences ecosystem continues to be able to thrive in New Jersey, as well as connecting with newly-elected policymakers to ensure they are aware of our organization and our partners as resources.

As the last session’s lame duck period concluded, a few bills relevant to the life sciences sector were passed by both legislative houses or signed by the Governor that are worth noting.

Legislators and advocates meet on January 8

for a ceremony of the bill’s signing.

On January 8, S2710/A4052 was signed into law. The bill will establish a three-year pilot program devoted to sickle cell disease and appropriates $10.2 million. The program will be established in Jersey City, Newark, Paterson, Plainfield, Trenton and Camden and will provide residents living with sickle cell disease education and support with the overall goal of increasing Patient access to clinical specialists, novel therapeutics and strategies to manage the disease.

Two additional bills received floor votes on Monday that are worth noting. Following extensive amendments, S1794 was passed by the Senate after its Assembly counterpart, A1255, was nearly unanimously passed with a vote of 73-1 at the end of last year. While the bill no longer includes several initial provisions that rendered it more effective from the perspective of Patients and the life sciences sector, the guardrails that it will implement on prior authorization are still welcome developments. BioNJ looks forward to working with our coalition partners and Patient advocacy organizations to pursue the improvements in practices like step therapy during this new legislative session.

S332/A1971, a bill that will implement a variety of requirements associated with consumer data, was passed by both legislative houses following extensive amendments. While the bill initially included a provision that appeared intended to insulate clinical trial data from its provisions, the initial language was insufficiently effective in doing so. We are grateful that, following meetings with bill sponsors and legislative leadership, the bill now includes language that will do so. However, there are some remaining opportunities to improve the bill’s language to ensure that it does not unnecessarily inhibit the ability for clinical trials to be conducted in New Jersey and internationally.

A couple of additional bills were signed by Governor Murphy on January 8:

• S553/A4238 (Zwicker, Conaway, Atkins) - Adds technology transfer duties to New Jersey Commission on Science, Innovation and Technology.
• S3604/A5212 (Madden, Cruz-Perez, Murphy, Stanley) - Authorizes use of healthcare platforms providing discounted prices for payment of prescription and non-prescription drugs or devices and for telehealth and telemedicine services.

Finally, as of January 1, the CBT surtax that had been extended previously has officially expired. BioNJ welcomes this prudent policy decision and we look forward to continuing to work with policymakers to ensure that public policy in New Jersey continues to foster biomedical innovation across the State.

Following three years of efforts, the Food and Drug Administration (FDA) recently decided to permit the state of Florida to import specific prescription drugs from Canada, representing a significant change in federal drug policy. In response, experts in drug pricing have been dubious about the claimed efficacy of the policy. In addition to noting that the implementation of a policy like this would be more difficult than seems to be expected, Craig Garthwaite, Professor and Director of Healthcare at Northwestern University’s Kellogg School of Management, suggested that this is “more politics and sound bites than it is actual sound drug policy".

Additionally, the Canadian government has consistently exerted some friction against U.S. drug import efforts, noting concerns that the nation’s drug supply is simply insufficient to satisfy the volume that this policy would demand. Garthwaite noted “I think we don’t quite realize that Canada is a big country without very many people. And so there aren’t that many drugs there.” He also notes that this would inevitably affect drug prices in Canada. In addition, Antonio Ciaccia, CEO of 46brooklyn Research, noted “I do think that there has been a little bit of false hope in what this type of policy could yield as far as savings to the consumer and the payer".

Due to these and other sources of skepticism, Garthwaite projected that this policy is unlikely to come to fruition.

Given the concerns that have been expressed by the life sciences sector regarding Patient safety and ramifications for access both domestically and internationally, BioNJ will monitor developments associated with this policy and continue to seize opportunities for education and engagement.

For coverage of this policy development as featured in The Hill, click here.

On Sunday, leaders from both legislative chambers announced an agreement on overall spending limits for a government funding bill. However, the agreement lacks any specifics beyond these spending limits and it remains to be seen whether the legislation will be passed prior to the expiration of funding provided in last year’s funding bill in less than two weeks. Given these outstanding questions, BioNJ hopes to see policymakers come to an agreement, as a government shutdown could significantly inhibit and delay the ability of new therapeutics to become available to Patients.

At the end of December, a coalition of Democrats in the U.S. House sent a letter to U.S. Trade Representative, Katherine Tai, regarding the expansion of the TRIPS waiver that currently encompasses COVID-19 vaccines to additionally incorporate diagnostics and therapeutics. Given the severe ramifications that this expansion would have on the life sciences sector nationally, and particularly in New Jersey — as well as the complete lack of any evidence that it would increase Patient access globally — we were thrilled to see so many members of the New Jersey congressional delegation sign on to the letter. Specifically, Reps. Josh Gottheimer (NJ-5), Donald Norcross (NJ-1) and Mikie Sherrill (NJ-11) from the New Jersey congressional delegation signed on — among the largest cohorts of any state’s delegation.

To read the letter, click here.

Additionally, John Murphy, Chief Policy Officer & Healthcare Counsel at the Biotechnology Innovation Organization (BIO) authored an op-ed in The Hill on the importance of intellectual property to continued innovation in the life sciences.

Finally, on the topic of intellectual property, professors Richard A. Epstein and Adam Mossoff published an op-ed in The Messenger regarding the impact that diminishing the Bayh-Dole Act would have on innovation.

BioNJ is the voice of New Jersey’s life sciences sector in Trenton and Washington. BioNJ’s Public Policy Support Series sponsorship opportunities are now available for 2024. Help ensure BioNJ continues to deliver our message of improved Patient access and enhanced innovation through a Public Policy Support Series Sponsorship.  

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