SBE Comments on Freeloaders of US Innovation
Small Business & Entrepreneurship Council (SBE Council) president & CEO Karen Kerrigan issued the following statement in response to President Trump’s Executive Order (EO) regarding an International Price Index (IPI) for drugs, which imposes foreign-based price controls on U.S. pharmaceuticals, along with the move to develop rules to allow for drug importation:
“Many countries across the globe freeload off of U.S. innovation, and that is particularly the case when it comes to bio-pharmaceuticals. Our innovators spend countless years and billions of dollars investing in the development of pharmaceuticals and breakthrough treatments, and foreign economies gladly use these life-saving drugs but put them under price control regimes. The U.S. cannot cede to this doomed model.
“Price controls never work, and when it comes to life-saving drugs and innovative medicines, today’s EO will undermine America’s strong leadership and competitive advantage. Rather than embrace price controls, the Administration needs to boldly address this imbalance through trade agreements with countries that are ripping us off. Fully opening markets to U.S. drugs, protecting the IP of these innovations, and negotiating to lift price controls will help our companies more fairly recoup their investments, which will lower drug prices for all. Small pharmaceutical companies dominate this critical U.S. sector, and these entrepreneurial firms will be the hardest hit by the move to adopt foreign price controls as American policy. In the end, patients, innovation, and our economy will all suffer.