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Biotechnology Summit: Putting a Human Face on Biotechnology

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Biotechnology Summit: Putting a Human Face on Biotechnology 17Rla S. HRG. 106-677 BIOTECHNOLOGY SUMMIT: PUTTING A HUMAN FACE ON BIOTECHNOLOGY HEARING before the JOINT ECONOMIC COMMITTEE CONGRESS OF THE UNITED STATES ONE HUNDRED SIXTH CONGRESS FIRST SESSION September 29, 1999 PRINTED FOR THE USE OF THE JOINT ECONOMIC COMMITFEE U.S. GOVERNMENT PRINTING OFFICE WASHINGTON: 2000 CC 62-990 FOR SALE BY THE U.S. GOVERNMENT PRINTING OFFICE SUPERNTENDENTOF DOCUMEN CONGRESSIONALSALESOFFICEWASHINGTON, D.C20402 JOINT ECONOMIC COMMITTEE [Created pursuant to Sec. 5(a) of Public Law 304, 79th Congress] SENATE HOUSE OF REPRESENTATIVES CONNIE MACK, Florida, Chairman JIM SAXTON, New Jersey, Vice Chairman WILLIAM V. ROTH, JR., Delaware MARK SANFORD, South Carolina ROBERT F. BENNETT, Utah JOHN DOOLITTLE, California ROD GRAMS, Minnesota TOM CAMPBELL, California SAM BROWNBACK, Kansas JOSEPH R. PITTS, Pennsylvania JEFF SESSIONS, Alabama PAUL RYAN, Wisconsin CHARLES S. ROBB, Virginia PETE STARK, California PAUL S. SARBANES, Maryland CAROLYN B. MALONEY, New York EDWARD M. KENNEDY, Massachusetts DAVID MINGE, Minnesota JEFF BINGAMAN, New Mexico MELVIN L. WATT, North Carolina SHELLEY S. HYMES, Executive Director JAMES D. GWARTNEY, Chief Economist HOWARD ROSEN, Minority Staff Director (ii) CONTENTS OPENING STATEMENTS OF MEMBERS Senator Connie Mack, Chairman ........ ..................... I Representative Pete Stark, Ranking Minority Member ..... ...... 4 Senator Bill Frist . ......................................... 6 Senator Edward M. Kennedy ............................... 31 Senator Robert F. Bennett .. .............................. 33 Representative David Minge ................................ 36 Senator Jeff Sessions .............. ....................... 39 WITNESSES PANELI Statement of Carolyn Boyer-Fortier, Breast Cancer Survivor. ...... 8 Statement of Dr. Steven Shak, Staff Scientist and Senior Director of Medical Affairs, Genentech ........................... 11 Statement of Joan London, Rheumatoid Arthritis Patient .... ..... 13 Statement of Dr. Robert Bunning, Director of the Arthritis Program at National Rehabilitation Hospital. ...... ................ 16 Statement of Erin Fagan, Kidney Transplant Patient ..... ....... 19 Statement of Dr. Julia Breyer-Lewis, Diabetic Nephrologist ...... 20 Statement of Dr. Lawrence Einhom, Lance Armstrong's Physician . 21 Statement of Lance Armstrong, Winner of the 1999 Tour de France and Testicular Cancer Survivor ....... ................. 24 PRESENTATION Statement of Arthur D. Ullian, Chairman, Task Force on Science, Health Care and the Economy ....... ................. 46 PANEL H Statement of Art Levinson, President and CEO, Genentech, Inc.. .. 50 Statement of Henri Termeer, President and CEO, Genzyme Corporation ................ ....................... 54 Statement of Hendrick A. Verfaillie, President and COO, Monsanto Company .......................................... 58 Statement of Lewis Edelheit, Senior Vice President, General Electric Corporate Research and Development ................... 61 Statement of Dr. Christine K. Cassel, Chairman, Department of Geriatrics and Adult Development, Mt. Sinai Medical Center 64 (iii) PANEL m Statement of Peter Lynch, Vice Chairman, Fidelity Management and Research Company ................ ................. 81 Statement of Matthew Andresen, President, The Island ECN, Inc ... 84 Statement of M. Kathy Behrens, Member, Board of Directors, National Venture Capital Association ................... 87 Statement of James K. Glassman, Resident Scholar, American Enterprise Institute; Co-Author, Dow 36,000 ............. 90 Statement of Dr. Daniel Callahan, Co-founder, The Hastings Center 94 PRESENTATION Statement of Dr. John Kim Niparko, Professor of Otolaryngology; Director of Otology, Neurotology, and Skull Base Surgery, The Johns Hopkins Hospital Accompanied by: Rachel Noble, Four-Year-Old Cochlear Implant Recipient and Julie Steinberg, Her Mother ....... 108 PANEL IV Statement of Edward Fritzky, Chairman and CEO, The Immunex Corporation ...................................... 115 Statement of Dr. David Carbone, Director, Experimental Therapies, Vanderbilt-Ingram Cancer Center ..................... 117 Statement of Dr. Joseph A. Smith, Chairman, Department of Urological Surgery, Vanderbilt University Medical Center . 118 Statement of Carl Rausch, Chairman and CEO, Biopure Corporation ............................... 119 Statement of Ronald W. Dollens, President and CEO, Guidant Corporation ...................................... 122 Statement of Dr. George Rathmann, Chairman, ICOS Corporation 125 Statement of Dr. Alan Sager, Professor of Health Services, Boston University, School of Public Health ................... 129 SUBMISSIONS FOR THE RECORD Prepared statement of Senator Connie Mack . ................. 140 Prepared statement of Senator Robert F. Bennett ..... ......... 143 Prepared statement of Carolyn Boyer-Fortier ................. 145 Prepared statement of Dr. Stephen Shak ..................... 150 Prepared statement of Erin Fagan .......................... 154 Prepared statement of Dr. Arthur D. Levinson ................ 155 Prepared statement of Henri Termeer ....................... 165 Prepared statement of Hendrick Verfaillie ................... 177 (iv) Prepared statement of Dr. Lewis Edelheit ......... ........... 182 Prepared statement of Dr. Christine K. Cassel ....... ......... 185 Prepared statement of Matthew Andresen and accompanying response to Senator Bennett ............................... 190 Prepared statement of M. Kathy Behrens ......... ........... 201 Prepared, statement of James K. Glassman ......... .......... 204 Prepared statement of Dr. Daniel Callahan ......... .......... 207 Prepared statement of Dr. John Kim Niparko ........ ......... 212 Prepared statement and accompanying letters of Edward Fritzky . 215 Prepared statement of Carl Rausch ............... .......... 236 Prepared statement of Ronald W. Dollens ......... ........... 240 Prepared statement of Dr. Alan Sager ........................ 248 (v) BIOTECHNOLOGY SUMMIT: PUTTING A HUMAN FACE ON BIOTECHNOLOGY September 29, 1999 Congress of the United States, Joint Economic Committee, Washington, D.C. The Conmmittee met at 9:45 a.m., in Room SH-216 of the Hart Senate Office Building, the Honorable Connie Mack, Chairman of the Committee, presiding. Senators present: Senators Mack, Frist, Bennett, Kennedy, Sessions, and Robb. Representatives present: Representatives Stark and Minge. Staff present: Shelley S. Hymes, James D. Gwartney, Colleen J. Healy, Victor Wolski, Chris Edwards, Kevin Boyle, Lori Hodo, Stephen Schultz, Joseph Pasetti, Angela Ritzert, Josephine Robinson, James Carter, Kerry Fennelly, Kurt Schuler, Chuck Skipton, Lawrence Whitman, Howard Rosen, Leah Liston, and Daphne Clones. OPENING STATEMENT OF SENATOR CONNIE MACK, CHAIRMAN Senator Mack. Good morning, everyone. Can you all hear me out there? Good. All right. We're still waiting for some of the panelists to arrive. But I think we will go ahead and get started. And we expect some other members of either the House or the Senate to join us. I have an opening statement. I'm sure that Mr. Stark has as well, and possibly one other. So we'll go ahead and get started. Again, I want to welcome all of you to the Joint Economic Committee's Second High Technology Summit, "Putting a Human Face on Biotechnology." Oftentimes, when we discuss high technology, especially here at the Joint Economic Committee, we tend to speak in numbers. What is its effect on the economy, on the financial market? How can we continue this growth? All very important.and relevant topics and we will obviously get into those during the balance of the day. 2 But the technological revolution we are experiencing is touching all of us in a much more personal way-by improving the quality of our everyday lives. Today's panelists of industry leaders, innovators and heroes are here to help us understand what Washington can do and what it should do-to ensure that the biotechnology industry continues to thrive and develop products that will improve our standard of living. U.S. biotechnology is clearly outpacing the rest of the world. Our biotech industry is about five times larger than in Europe. There are almost 1300 U.S. biotech companies that employ more than 140,000 people in high-wage and high-value jobs. As I see it, we've entered the era of the Innovation Economy, a system in which we see as never before the value of an idea. Today, more than ever before in our history, brain power is being valued as the engine of economic growth. I view this new economy as kind of a continuum-a logical progression rooted in the freedom that sets our country apart: Freedom leads to Knowledge. Knowledge leads to Innovation. Innovation leads to Capital Formation. Capital Formation leads to New Products. And New Products lead to New Jobs. It is a virtuous cycle which has produced immeasurable blessings for men and women all around the world. It has lifted millions out of poverty. It has stretched the limits of human achievement and it will generate benefits tomorrow that we can't begin to comprehend today. And it doesn't just generate wealth. It generates progress. As a case in point, consider biotechnology. And when it comes to strengthening government policy to advance medicine and science, let me be very clear and declare my special interest right up front. I'm a cancer survivor. I'm a big believer in the miracle of modem medicine. However, I know that for every medical miracle, there are a hundred failed efforts-promising ideas that
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