Could you walk us through the association’s main milestones since you joined as president in 2019?
We are proud of the way many of our Californian member companies led the way through and out of the pandemic; Gilead and Genentech came up with the first Covid-19 therapeutics,; Abbott led the development of rapid tests; and Pfizer and J&J developed vaccines.
The association itself has kept a busy agenda and one of our focus areas has been talent and diversity. In early 2021, we launched the Racial & Social Equity Initiative to unify our efforts and uplift the Black, Latinx, Native American, and Pacific Islander people in California, and we are working hard to create a more diverse and equitable sector. We have raised just under US$ 3 million and we have partnered with more than 50 community organizations across California. We plan to continue this important work with even more partners to really drive impact. We also integrated CLSA and CLSI to form California Life Sciences, rebranding at the same time. From a performance perspective, since 2019 we have grown our membership by 29% to over 1,100 members, revenue by 42%, and membership revenue by 33%. Our reserves, which were previously negative, have grown by 670%, and our employees by about 39%.
Why did California become central to the pandemic response and to the life sciences industry in general?
California was the birthplace of biotechnology over 30 years ago and has ever since been at the forefront of innovation and R&D. When the pandemic hit, our member companies responded quickly, putting their other work on hold to find vaccines, therapeutics, and the right testing options. Of all 79 COVID-19 vaccine developments in the United States, more than a quarter have been sponsored by or primarily supported by organizations in California, which demonstrates California’s long-standing commitment to invest in a world-class R&D infrastructure that can respond to the biggest challenges facing humanity.
Could you walk us through the main challenges the industry faces - especially in relation to accessible drug prices and the Inflation Reduction Act?
Finding the right approach to patient access to treatment is top of mind for our leaders across our sector, and we are working with policy makers to find fair solutions for all actors involved, so that manufacturers remain incentivized to innovate. The IRA is problematic in several ways. We support lowering patients’ out-of-pocket costs, of course. The issue we have is ensuring the government understands there is a systemic issue and the role of PBMs and insurance companies, because the counter prices paid by patients are not set by the drug companies and manufacturers rebates usually only make it as far as PBMs.
We must be very clear on just how severe the ripple effects of the IRA, in its current form, can be. New research published by EU based Vital Transformation counts among the consequences hundreds of thousands of job losses as project funding diminishes, while VC companies are adopting a wait-and-see attitude.
Also, if such drug pricing provisions had been in place, only six of 110 therapies approved over the past decade would have made it to patients due to the limitations on research funding and partnerships. Finally, contrary to what its proponents have been saying, it is not going to magically solve affordability, and I think the public will be disappointed to see how their family’s bottom line doesn’t improve. It’s unpleasant to have the Act coming on the heels of the pandemic response, and the President’s recent follow-on executive order exacerbates the concern around research investment and feeling of misunderstanding of our sector’s work.
How and why is it important for CLS to have a diverse membership, from small start-ups to massive multinationals?
One thing that differentiates California Life Sciences from other trade associations across the country is the diversity of our membership. We regularly work with academia and research institutions and companies spinning out new products and ideas to help them partner and build therapies together, as well as access mentorship easily, in the case of start-ups. This diverse mix of member companies provides elected officials with guidance on the challenges and rewards of funding, partnerships, and licensing.
What are the association’s three main objectives for the coming five years?
Firstly, our focus is on working with the industry on the implementation of the IRA, aiming to limit the harm to innovation. In parallel, we will be working with Congress and the Senate officials to amend the Act so that it does not devastate the industry and innovation. California is the fifth largest economy in the world, and it is essential to protect its vibrant life sciences industry, comprising over 12,000 entities across the state. Thirdly, one of CLS’s main priorities is to advance health equity by supporting and advancing policies that provide greater access to innovative cures for all patients in all communities. CLS will continue to work to empower our life sciences community and members to deliver innovative solutions for healthier lives.
