April 4, 2007

Members of the Senate Committee on Health
California State Senate
State Capitol
Sacramento, CA 95814

RE: SB 771 - SUPPORT IF AMENDED

Dear Senator:

The Center for Genetics and Society supports SB771 if amended. This bill would ensure that the state receives a fair return from any profitable discoveries made with publicly-funded stem cell research while improving access by economically vulnerable Californians. But we are concerned that the bill as currently written does not go far enough to protect Californians from potentially unfair pricing practices.

We are encouraged to see the Legislature take action in the critical area of the oversight of the California Institute for Regenerative Medicine (CIRM). SB 771 is an important first step in bringing much-needed improvements to the California Stem Cell Research and Cures Act.

The bill would ensure that the state receives a fair share from any blockbuster development by removing caps on returns to the state from any successful publicly-funded inventions, which are currently part of CIRM policy.

In addition, SB 771 enables public agencies to provide more accessible health care to California citizens, particularly to those who are most economically vulnerable, by allowing publicly-funded health programs to purchase any successful publicly-funded inventions at the federal Medicaid price.

These two provisions represent significant improvements to current CIRM policy. In addition, SB 771 codifies in statute several other provisions that are consistent with current CIRM policy, and that we believe should be affirmed.

However, we are concerned that potentially unfair pricing practices could harm Californians. If faced with excessively high prices for drugs or treatments, insurers would likely either pass the costs on to patients or fail to cover them. No one wants to see medical treatments developed with public funds be inaccessible to middle-class Californians who have medical insurance. We would like to see SB 771 amended to provide a specific mechanism or procedure with which the state can act to prevent excessive pricing of inventions developed with public funding.

For these reasons, the Center for Genetics and Society supports SB 771 if amended.

Sincerely,

Marcy Darnovsky, Ph.D.
Associate Executive Director
Center for Genetics and Society