On October 8, 2024, Endpoints News, a well-known industry media outlet, reported that GSK willExitBIO(Biotechnology Innovation Organization).The information was confirmed by a spokesperson for GSK, who stated that GSK remainsMember of PhRMA, the industry association representing large pharmaceutical companies.
To better understand this withdrawal, a brief introduction to BIO andThe functions of the two major organizations of PhRMA.First, let's talk aboutPhRMA, the predecessor of this organization was named"Pharmaceutical Manufacturers Association"（PMA）, by Parker-Davis, Pfizer, Merck, American Cyanamid, and Johnson & Johnson, among other pharmaceutical companies, in 1958Co-founded in the year. In 1994, it was renamed "Pharmaceutical Research and Manufacturers of America"（PhRMA）, its original intention was to lobby.Since the members are mainly composed ofComposed of large pharmaceutical companies, the focus of their lobbying isDrug pricing, medical insurance coverage, intellectual property protection, etc.Issues in the Traditional Pharmaceutical Industry,Lobbying activities also focused onPolicy lobbying and public advocacy.AndThe creation history of BIO is later thanPhRMA, founded in 1993, functions andPhRMA is basically the same, also lobbying.However, BIO’s membership is broader, including many startup biotech companies, and its lobbying efforts focus more on providing resources and support to members, such as financing advice, market access guidance, legal consultation, with greater emphasis on cutting-edge areas of biotechnology.
This time, GSK's withdrawal from BIO is a further blow to the aforementioned lobbying organization.Since December of last year, several large pharmaceutical companies have announced their withdrawal from BIO, specifically includingPfizer, UCB, Takeda, etc. March 2024,WuXi AppTec Terminates BIO Membership Voluntarily.
The same thing happened in PhRMA, where major pharmaceutical companies such as AbbVie, Teva, and AstraZeneca also successively withdrew this year.The core reason for the "wave of withdrawals" can be simply understood as"The lobbying power of the lobbying organization has declined."The initial intention of establishing the lobbying organization was to lobby the federal government to support industry development and protect the interests of members.In 2017,BIO Spent Over $9.3 Million Lobbying the Federal Government on Issues Including Drug Imports, Medicare Part D, the 340B Drug Discount Program, and Orphan Drugs for Treating Rare Diseases. From 2019 to 2022, Expenditures Further Increased, with Annual Spending Reaching $12-13 Million.However, withIn August 2022, the Biden administration signedThe Inflation Reduction Act (IRA): Unprecedented Challenges for Drug Prices, BIO andPhRMA subsequently appealed, butDespite heavy investment, the government's intervention in drug prices could not be stopped.This has also directly led to the withdrawal of major pharmaceutical companies, with a sense of "Spending Money but Getting Nothing Done" of déjà vu.Moreover, in the controversy stirred up by the Biosecurity Act, WuXi AppTec, as a member of BIO, experienced two completely different attitudes from BIO. Facing pressure from Congress, BIO not only failed to uphold its position and protect the interests of its members but also did not clarify its decision to revoke WuXi AppTec's membership. This move, for other members, if not a case of 'when the lips are gone, the teeth will feel the cold,' at least damages the credibility of the organization.In terms of external factors, with the potential return of the Trump administration, the IRA may not be expanded and could even lose its prioritized status due to financing considerations. The benefits that lobbying organizations can bring may further diminish.
LobbyingThe organization's service targets are always pharmaceutical companies (members), which represent the main channel for member engagement and lobby policymakers on issues such as taxation and regulation.Now that the U.S. election has concluded, the enforcement of previously enacted laws will undergo changes, and the competitive market landscape will shift accordingly. Members of (lobbying organizations) may need to reassess their positions within industry groups. As a spokesperson for GSK stated in a declaration, "At present, we believe there are other areas where we can focus our resources."References:
1.GSK leaves biotech trade group BIO（ENDPOINTS NEWS）
2.Spending Money Without Effectiveness —— Giant Pharmaceutical Companies Leaving Industry Lobbying GroupsFarber Technologies）
3. Other Public InformationCover image source:pixabay
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