A recent White House announcement effectively sets the price for 10 lifesaving medicines. U.S. Chamber research has demonstrated that because of price controls and other market-restrictive policies, American patients will have reduced access to new cures and treatments and face longer wait times for existing medicines. It’s important to note that many of the medications subject to price controls under this announcement are already facing generic competition and upcoming patent expirations, which will naturally lead to market-driven price cuts.
Price controls decrease access to the latest breakthroughs and stop the innovation needed for new cures. Reports indicate that life science innovators have already had to slash their research and development budgets in anticipation of government price controls. Research conducted by the U.S. Chamber estimates that price controls could cut clinical trial research in some therapeutic areas by as much as 75 percent, including a 70 percent cut in obesity studies and a 60 percent cut in early-phase cancer and biologics studies. The U.S. Chamber’s research has also demonstrated that price controls may put the development of more than 400 new medicines at risk.
Countries that use price controls see fewer overall biopharmaceutical product launches. For example, out of 104 new oncology products launched globally since 2017, 80 percent were launched in the U.S., where, until now, there have been no price controls.
It's crucial that we address this issue promptly to ensure the best outcomes for American patients. Congress must stop unelected, unaccountable government bureaucrats from imposing a price control regime on America’s life-science innovators.
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