DRUGMAKERS CAUTIOUSLY OPTIMISTIC ABOUT DEAL — The pharmaceutical industry expressed relief Tuesday over the debt ceiling deal struck by the White House and House Speaker Kevin McCarthy. A big part of their relief is the deal retaining $5 billion for the funding of research into improved Covid-19 vaccines and treatments. Covid vaccine maker Novavax said it “remains encouraged by the continued investment in and recognition of the need for continued development of Covid vaccines.” The debt limit package, if signed into law, would claw back about $30 billion in federal funding appropriated during the pandemic. It doesn’t touch the Inflation Reduction Act’s drug price negotiation provisions despite the Biden administration's push to expand them in its fiscal 2024 budget proposal. “Given the impacts on capital markets and capital formation, we have been watching closely — cautiously, optimistically — as negotiations have progressed,” Nick Shipley, Biotechnology Innovation Organization’s chief advocacy officer, said. A list specifying the clawed-back Covid relief funds was obtained by POLITICO from a White House source granted anonymity to share some of the details of the debt ceiling package. The list, which the administration is sharing with lawmakers, outlines the exclusions from the clawbacks. They include more than $800 million to monitor and strengthen pharmaceutical supply chains and roughly $2 billion for CDC activities such as genomic surveillance of the virus. But public health experts await more details. Georges Benjamin, executive director of the American Public Health Association, praised the agreement for maintaining funding for vaccines and treatments for people without health insurance and veterans, and ongoing research for better vaccines and treatments. But if a Covid surge hits the U.S. in the future, another emergency appropriation might be necessary, he added. “It is a problem, but probably low-risk for now,” Benjamin said. The Association of State and Territorial Health Officials and other public health groups are still trying to understand the impact of the Covid-funding clawbacks on the CDC and state public health efforts to strengthen public health infrastructure. “It looks like a lot of [the infrastructure] is still in place, but we are not certain of that,” ASTHO chief medical officer Marcus Plescia said. IT'S WEDNESDAY. WELCOME TO PRESCRIPTION PULSE. Our warmest welcome to the National Zoo and Conservation Biology Institute’s newest baby gorilla, who was born over the holiday weekend. Send news, tips and summer weather to David Lim (dlim@politico.com or @davidalim) or Katherine Ellen Foley (kfoley@politico.com or @katherineefoley). TODAY ON OUR PULSE CHECK PODCAST, host Ben Leonard chats with POLITICO's Victoria Guida about her data analysis revealing how low-income workers saw significant wage gains during the pandemic as a result of market changes and several government policies. Plus: What the data shows about health care workers.
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