Restoring American Leadership in Biotech

The big picture: The U.S. has long led the world in biopharmaceutical innovation. But a recent GlobalData report reveals that, in 2023, China conducted over 25% more industry-sponsored clinical trials than the U.S.—a major shift in global biopharma leadership. Chinese firms are not only increasing trial volume but also licensing innovations to U.S. companies, signaling growing dominance in biotech.

Why it matters: China’s rise is no accident. For decades, the Chinese government has been making strategic investment decisions that have fueled the growth of clinical research in China. Meanwhile, some decisions by American policymaker’s risk undercutting the very ecosystem that made it the world leader in biomedical research. Without an urgent course correction, the U.S. risks falling behind in both innovation and its global influence. To stay ahead, America must rethink policies that restrict investment and slow medical progress.

What’s next: To remain globally competitive, the U.S. must avoid policies that chill innovation and investment. Recommended actions include:

• Abandon IRA price controls: International experience shows price controls lead to fewer drug launches and slower patient access—as demonstrated in Germany and Spain. U.S. Chamber research shows that IRA price controls could reduce early-stage cancer research by nearly 60%, threatening the pipeline of clinical trials and new treatments. [ Read more on the true cost of price controls .]
• Reject expanded march-in rights: The tech transfer system enabled under the Bayh-Dole Act helped launch more than 15,000 medical startups and added $1.9 trillion to the U.S. economy. Misusing march-in authorities undermines that law and risks weakening the very foundation of American biomedical innovation. [ Learn how march-in misuse threatens innovation and national security .]
• Oppose most-favored nation (MFN) pricing proposals: Adopting failed policies of other countries that limit access to cutting-edge therapies and weaken America’s competitive edge in biotech is the wrong answer. [ See why MFN proposals hurt innovation .] Tying U.S. prices to foreign government rates discourages private investment in R&D.

The bottom line: Competing with China means leaning into what America does best: fostering free enterprise, protecting intellectual property, and a cultivating a policy environment that incentivizes innovation. The U.S. must act now to preserve its leadership on biopharmaceutical innovation to ensure that American patients can benefit first from the next generation of life-saving treatments. Policymakers, industry leaders, and other stakeholders must collaborate to create an environment that rewards innovation and supports growth.

About the author

John Manchester