Joe Biden’s promises to tackle cancer and lower drug prices haven’t materialized as expected. His main legislative effort, the Inflation Reduction Act, has actually led to increased drug prices, complicating cancer treatment due to burdensome regulations and penalties.
Moreover, Biden’s collaboration with progressive figures like Bernie Sanders and Nancy Pelosi has pushed for importing Europe’s problematic drug pricing controls. These measures, such as international reference pricing, serve as government-imposed price caps that hinder the development of new treatments for serious conditions like cancer.
Patients needing innovative therapies often find these policies prohibitively expensive. Just look at patients in Europe, who face an average wait of 512 days to obtain new medications for cancer, Alzheimer’s, and other critical illnesses. This lengthy wait means they’re left without necessary prescriptions for extended periods.
If the U.S. adopts these price controls, American-made lifesaving drugs might not be accessible to European patients who currently depend on them.
Historically, Europe was a hub for pharmaceutical innovation until the 1980s when it adopted socialist pricing strategies. This shift led to a swift decline in drug development; European pharmaceutical companies relocated to the U.S. for a more favorable environment.
The outcomes are telling. Since 2014, about 600 new drugs have received approval in the U.S., many representing first-time breakthroughs. The U.S. is now at the forefront of medicinal innovations, which not only provides Americans with early access to state-of-the-art treatments but also supports over 5 million jobs across 1,500 research and manufacturing sites.
Biden’s and his allies’ push for European-style price controls threatens this success. Even more concerning is that these policies could allow China to outpace the U.S. in pharmaceutical innovation, risking jobs and economic stability.
Supporters of these price controls contribute to uncertainty, while the Chinese Communist Party (CCP) is rapidly advancing. Currently, 30% of global drug trials are conducted by Chinese firms, and that number is nearing 35% in the U.S. Chinese investment in research and development has surged, increasing by 2,600% from 2000 to 2021.
Chinese startups, backed by the CCP, are increasingly sidelining American biotech firms. By 2024, nearly one-third of innovative drugs licensed by multinational companies could be sourced from China.
This shift isn’t random. The CCP is keenly focused on establishing its own robust pharmaceutical sector, with intentions that could harm American companies. If they create a steady pipeline for new drugs, the U.S. may eventually find itself dependent on Chinese medical devices, as witnessed during the COVID pandemic, raising safety concerns.
President Trump has recognized these issues and strives to maintain America’s leadership in national security and drug development. His administration could renegotiate trade agreements to require that European nations pay fair market prices for drugs. The U.S. is responsible for a vast majority of new medicines globally; however, an $117 billion trade deficit in pharmaceuticals exists, largely owing to European price controls. Trump aims to address this imbalance by halting Europe’s exploitation of American innovation.
With opportunities to lower drug costs and combat diseases like cancer, Alzheimer’s, and diabetes, Trump promotes health initiatives focused on prevention and screening. He aims to dismantle the intermediaries in insurance and hospital systems that inflate drug prices and to foster an environment conducive to developing new treatments.
Adopting Biden’s flawed model of imposing European-style price controls is a recipe for disaster, risking the U.S.’s standing as a leader in medical innovation. Fortunately, Trump understands the stakes involved.
