Biopharmaceutical Innovation

Applying Most Favored Nation pricing to both Medicare and Medicaid—requiring U.S. prices for drugs that have already been launched to equal the lowest prices among a group of peer countries—is estimated to reduce U.S. pharmaceutical revenues by 49 percent and global pharmaceutical revenues by 31 percent.

The FDA is considering allowing seven unapproved peptides—substantially sourced through a Chinese gray market—to be used by U.S. compounding pharmacies, despite its own scientists warning against it. Approving them would legitimize unvetted foreign suppliers and undermine evidence-based drug regulation.

Canada should significantly expand commercialization-focused grant programs through the Canadian Institutes of Health Research (CIHR) and increase Canada’s overall health science research investments to a scale commensurate with global competition.

China has utilized numerous illegitimate tools in pursuit of global leadership in biopharmaceutical manufacturing, including IP theft, forced labor, and stealing genetic information. This must be met with a swift and forceful response from U.S. policymakers.

China is becoming an increasingly capable competitor in the global pharmaceutical industry, with growing strengths at every level of the biopharmaceutical supply chain. Responding to this challenge will require a comprehensive, whole-of-government strategy, with strong cross-agency collaboration, to advance U.S. biopharmaceutical competitiveness.

China has become an increasingly capable competitor in the global biopharmaceutical industry. To remain competitive, the United States should double down on policies to ensure that it offers the world’s leading environment to support private sector life sciences innovation.

The biopharmaceutical industry generated over $800 billion in direct output in the United States in 2022, and indirectly supported an additional $850 billion in output through its suppliers and other downstream sectors, for a total of $1.65 trillion in economic output.

AI systems like Robin could reshape early-stage drug discovery, but only if policymakers support the data, infrastructure, regulatory clarity, and incentives needed to scale them responsibly.

If cancer deaths were to be fully eliminated by 2030, over the subsequent 35 years, 30.7 million deaths would be averted, saving 380 million years of life. These additional years of life would also yield substantial economic benefits, as each year of life generates economic value, increased productivity, and tax revenue.

Watch now for an expert panel discussion on what Europe’s experience reveals about the risks of undermining biopharmaceutical innovation, how policy choices shape R&D investment and competitiveness, and what steps U.S. policymakers should take to sustain American leadership in life sciences.