Joe Biden’s inexorable march toward the fanatical left continued this week, as he and Bernie Sanders (D – Vermont) introduced their “unity platform” in anticipation of this year’s Democratic convention. We can thus add weaker U.S. patents and drug price controls imported from foreign nations to Biden’s existing dumpster fire of bad ideas.
Here’s the problem. As we’ve often emphasized, and contrary to persistent myth, American consumers enjoy far greater access to new lifesaving drugs than people in other nations, including those in “other advanced economies” (Biden’s words) whose price controls Biden seeks to import:
Of all new cancer drugs developed worldwide between 2011 and 2018, 96% were available to American consumers. Meanwhile, only 56% of those drugs became available in Canada, 50% in Japan, and just 11% in Greece, as just three examples. Patients in nations imposing drug price controls simply don’t receive access to new pharmaceuticals as quickly as Americans, if they ever receive them at all.”
Even the World Health Organization (WHO) acknowledges that overseas consumers’ lower access to pharmaceutical innovations stems from their governments’ imposition of price control regimes:
Every time one country demands a lower price, it leads to lower price reference used by other countries. Such price controls, combined with the threat of market lockout or intellectual property infringement, prevent drug companies from charging market rates for their products, while delaying the availability of new cures to patients living in countries implementing those policies.”
Just as dangerously, Biden also advocates weaker patent protections for U.S. pharmaceutical innovators. The United States has throughout its history led the world in protecting patent and other intellectual property (IP) rights, and as a direct result we’re the most innovative, inventive, prosperous nation in recorded history. The U.S. claims just 4% of the world’s population, and even our world-leading economy accounts for less than 25% of global production, yet we account for an amazing two-thirds of all new pharmaceuticals introduced to the world. Public policy should be strengthening patent rights, not weakening them.
Biden rationalizes his socialized medicine proposal by asserting that “taxpayers’ money underwrites the research and development of many prescription drugs in the first place.” But as we’ve also noted, private pharmaceutical investment in R&D dwarfs public funding, so he can’t justify his heavy-handed bureaucratic idea on that basis.
Just three months into the coronavirus pandemic lockdown, American pharmaceutical innovators are already entering final testing phases, far ahead of original estimates of their anticipated arrival. That should come as no surprise, because we’ve long led the world. But it emphasizes even more that Biden’s toxic proposal to impose foreign drug price controls and to weaken U.S. patent protections is particularly dangerous at a moment like this.
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