WASHINGTON, D.C. — Today, the U.S. Chamber of Commerce released alarming findings showing how U.S. clinical trials and medical research will plummet under government price controls in a new report, "From Innovation Oasis to Research Desert: The Impact of Price Controls on Clinical Research and Development."
The Biden administration is executing a series of policies – starting with price controls in the Inflation Reduction Act (IRA), calls to seize drug patents, and more proposals to expand price controls to the private sector – that will lead to dramatically fewer clinical trials and thus fewer medical discoveries.
"The evidence is clear, the administration's pursuit of price controls will reduce funding for research and clinical trials, resulting in fewer therapies for diseases like cancer, Alzheimer's, and heart disease," said Tom Quaadman, Executive Vice President of the U.S. Chamber of Commerce.
"The private sector sponsors 70% of all clinical trials, and price controls could slash private sector research by up to 75%. By taking away the dollars needed for private sector research, cures and treatments may never happen, creating a clear and present danger for scientific progress and the healthy well-being of all Americans," Quaadman said.
The impacts of price control policies on U.S. medical research mean:
- Cancer research drops 60%, including for promising, next-generation biologics
- Heart disease research declines 12%, the leading cause of death in the U.S.
- Obesity trials diminished by 70%, despite affecting over 40% of Americans
- Up to 75% cut in research funds from all privately funded clinical trials
Clinical trials involve rigorous testing for new medicines and are critical to advancing disease-fighting innovation. Although the United States is home to just 5% of the world's population, it’s responsible for 36% of worldwide clinical research—so any decline is a devastating impact on patients—both at home and abroad.
Studies this year show, when tried in other developed nations, government price controls slowed patient access to new treatments, increased wait times—in some instances upwards of 500 days—and hindered investment in new research.
This year alone, Members of Congress and the Administration have proposed expanding the IRA’s price controls to the private insurance market, putting the United States on a collision course with European style medicine and price controls.
America’s patients need Congress to act swiftly and reverse the impacts of government price controls. The Chamber will use every tool at our disposal to stop the Administration from destroying America's ability to discover the next breakthrough treatment or cure.