PROTECTING SMALL BUSINESS, PROMOTING ENTREPRENEURSHIP

Importing Drug Price Controls is Unhealthy U.S. Policy, says Advocate for Entrepreneurs

By at 24 July, 2020, 4:23 pm

NEWS

For Immediate Release

July 24, 2020

Washington, D.C. – 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 (“most favored nation”), which imposes foreign-based price controls on U.S. pharmaceuticals:

“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.”

 

Related Content:

SBE Council Comments Filed to CMS on the Proposed International Pricing Index Model, December 2018.

SBE Council’s Statement on HHS’s Drug Importation Plan, August 2019.

Small Business Insider: Reminder During This COVID-19 Crisis – The Pharmaceutical Industry is Dominated by Small Businesses, April 2020.

 

Contact: Karen Kerrigan, kkerrigan@sbecouncil.org

SBE Council is nonpartisan advocacy, research and education organization dedicated to protecting small business and promoting entrepreneurship. For 25 years, SBE Council has worked on and advanced a range of private sector and public policy initiatives to strengthen the ecosystem for strong startup activity and small business growth. Visit www.sbecouncil.org for additional information. Twitter: @SBECouncil

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