April 12, 2022
Pandemic or not, millions of Americans heavily depend on lifesaving treatments. Thanks to America’s cutting-edge healthcare system and strong intellectual property (IP) policies, these treatments can come to market in record time. Yet, the Biden administration threatens to derail the TRIPS Agreement—the bedrock of the United States’ medical innovation.
The TRIPS Agreement has incentivized drug manufacturers to invest large amounts of resources into research and development (R&D) with the assurance that their intellectual property (IP) will be protected for a given amount of time if their R&D efforts are successful. As a result, manufacturers don’t have to rush through the R&D process and can take time to make any needed adjustments to keep pace with patients’ changing health needs.
This reassurance is critical because R&D is costly. In 2019 alone, pharmaceutical companies invested $83 billion into researching and developing new drugs. These same companies play a pivotal role in developing new cures and treatments for the sickest patients and most chronic conditions. If we threaten patent protections and rush the process, there is no guarantee that manufacturers’ significant investments will have a strong return.
Regardless of the remarkable outcomes IP has on patients’ access to treatments, the U.S. Trade Representative’s (USTR) office recently reached a potential “compromise” agreement with three other World Trade Organization (WTO) members, including the E.U., India, and South Africa. This alleged “compromise” is an IP waiver that would destroy the TRIPS Agreement and authorize the production and supply of COVID-19 vaccines without the consent of the patent holders. Consequentially, the waiver would force drug manufacturers to surrender their lifesaving IP on COVID-19 vaccines, which could endanger pandemic recovery.
Proponents of the “compromise” advertise it as a “major step forward” to vaccinating the world’s most underdeveloped countries, but this actually misses the mark.
Vaccine supply is not the primary reason for concern about vaccinating the world’s population, and emotionally driven arguments that increased global vaccine manufacturing will end this pandemic are far from correct. In fact, Senators Thom Tillis and Tom Cotton have argued that some countries, even India and South Africa, are currently facing excess supplies of vaccines. What’s more, studies have forecasted that global vaccine production will reach 20 billion doses this year, which is a testament to private sector innovation and the progress made since March 2020.
Leaders in Washington must remember that the U.S. patent system has been the backbone of America’s innovative spirit for centuries. The recent “compromise” to dismantle the TRIPS Agreement could ultimately compromise our global reputation and is a short-term solution that might impede lifesaving treatments for years to come.
Instead, the USTR should reverse course and pursue meaningful proposals that advance vaccination rates without jeopardizing investment in future cures.
