
Director, IP Policy, Global Innovation Policy Center (GIPC), U.S. Chamber of Commerce
Published
January 16, 2025
In 2024, we observed a focused campaign by anti-patent activists urging the U.S. government to intervene to lower drug prices. Unfortunately, despite substantial evidence showing that such policies would have minimal impact on the costs of medicines while significantly hindering medical innovation, these advocates have persisted in their innovation killing efforts in 2025.
Why it matters: Price controls on medicines may seem like a quick fix, but they come with significant drawbacks. As evidence and experience from other countries demonstrate, price controls reduce the availability of new treatments and cures, and ultimately harm patients who rely on cutting-edge medical innovation.
The research speaks for itself: In 2024, the Chamber regularly highlighted how price controls impact patients and undermine medical innovation. The Chamber’s research shows that:
- Market-restrictive policies like price caps are causing more harm than good for pharmaceutical innovation, and orphan medicines are no exception. Read more in “Government Price Caps Threaten Rare Disease Cures.”
- The American innovation pipeline has the potential to end cancer as we know it, but this promise is at risk unless policymakers reverse course. Dig deeper here “How Price Controls Threaten America’s Fight Against Cancer.”
- The Congressional Budget Office found that proposed policies to reduce prescription drug prices would have minimal impact on costs while significantly hindering medical innovation. Take a look at “Small Price Cuts, Big Impact on Development of New Medicines.”
- We’ve only just scratched the surface of anti-obesity medical innovation. But we can only unlock that power if Congress reverses the impacts of government price controls. Read more in “Anti-Obesity Medications: The Future of Medical Innovation.”
- Lawmakers’ proposal to use Section 1498 for semaglutide would undermine innovation and economic growth. Do a deep dive here “Trimming Innovation: Dangers of Government Seizing Property.”
The bottom line: It’s clear that price controls will hinder medical innovation, harm American patients, and fail to deliver substantial cost savings. By fostering and supporting a free enterprise system, and by encouraging investment in research and development, we can ensure that patients have access to the most effective and innovative treatments available and save and enhance the quality of life for millions of people in the process.
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