What would a Harris administration mean for biotech investment?

By Dennis Ford, Founder and CEO of Life Science Nation

With Vice President Kamala Harris in the spotlight for the presidency, what would her administration mean for biotech investment and partnerships? Here’s some commentary and a look at her past and potential future impact:

Science

Harris, the daughter of a breast cancer researcher, is strongly pro-science. She has advocated for COVID-19 vaccines, followed CDC guidance, and increased the NIH budget. During the 2020 VP debates, she criticized her opponent for not believing in science. Publications like Scientific American and Nature have praised her. She would likely leverage federal resources to advance science, particularly healthcare and climate.

Drug Pricing

Harris is known for her progressive stance on drug pricing. As California’s AG, she won lawsuits against big pharma for marketing and pricing issues and played a key role in lowering insulin prices. Her “Medicare for All” plan proposed allowing HHS to negotiate drug prices and supported “march-in rights” to control certain patents. She advocated for linking U.S. drug prices to those negotiated by other governments and proposed taxing profits from “abusive drug pricing” at 100%. However, many of these measures faced opposition and were not passed. Harris would likely continue pushing for drug price reductions and Medicare expansion.

Pharmacy Benefit Managers (PBMs)

Lawmakers are increasingly scrutinizing PBMs for their role in drug pricing. The FTC is suing several large PBMs, and the House Oversight and Accountability Committee is holding hearings on their practices. While Harris is not central to these actions, the evolving situation may influence her approach to drug pricing.

Payors

Harris has opposed the rising power of health insurers, notably suing to stop the Cigna-Anthem merger in 2015-2016. In 2021, she supported expanding Medicare and private insurance coverage, particularly in maternal care and disadvantaged communities. Harris would likely continue to exercise caution with the health insurance industry, opposing moves to increase its influence on healthcare pricing while advocating for increased accessibility.

A Harris presidency would likely be pro-science and pro-R&D, including increased funding for HHS and NIH. She would continue to advocate for drug price reductions and expanded healthcare access through Medicare and private insurance. The ongoing investigation into PBMs could lead to a more nuanced approach to drug pricing. Policy developments, as well as macroeconomic factors, can impact biotech investment, from seed funding to IPOs.