The United States faces big decisions that will dictate whether it again takes up the competitive mantle in the world, or whether it will cede leadership to others.
Some of the most important choices are found in current negotiations for the Trans-Pacific Partnership (TPP), which is designed to boost American exports, strengthen American jobs, and carve out an increased competitive role for our country across the Pacific region.
In last month’s meetings in Hawaii, international negotiators wrangled over one of the most important components within the TPP: protecting intellectual property (IP).
America was born from great ideas, but built on having the guts to protect and defend them. Strong IP laws encourage the same kind of smart risk-taking, nurturing and protecting of the best new ideas that can lead to breakthroughs of all kinds.
In our industry, this translates into new medicines for diseases that once had few options — like HIV and hepatitis C, which are both treatable today and, in the latter case, completely curable for more than 90 percent of patients.
It’s also why family and friends with cancer enjoy better health odds today than mankind has ever had, extending possible horizons for years, when they had shrunk down to mere months.
But what also built America was the ability to export its best ideas for the betterment of neighbors around the world and economic competitiveness. And so at a time when 95 percent of the world’s consumers live outside the U.S., and the countries currently negotiating the TPP make up 40 percent of global GDP, our trade policy should embrace broader access to these growing global markets. This will let other nations benefit from the new products we develop and produce, while strengthening our balance of trade.
This can only happen if TPP mirrors the strong IP laws that already exist in the U.S., including 12 years of data protection for biologic drugs. This is critical to keeping high value jobs in America. It also will help spur the R&D investment needed to keep innovation moving.
The U.S. has one of the world’s strongest intellectual property systems, and enjoys among the highest generic drug penetrations in the world today, with more than 4 out of every 5 prescriptions being generic copies of the original, breakthrough medicines. These generic copies are sold at a fraction of the price of the initial medicine.
In no other part of the U.S. health care system do prices actually come down over time like they do with biopharmaceuticals. And as a result, the share of prescription medicines has remained steady at just ten cents of every dollar spent on health care in the U.S. since 1960, according to the U.S. Centers for Medicare & Medicaid Services.
There are many decisions before the TPP negotiators, which include U.S. Trade Representative Michael Froman and his peers. But as the choices become clearer — along with the reality that they will help chart America’s global competitiveness in the future — I can think of none more important than choosing to protect great American inventors and their ideas. Great thinkers and doers deserve nothing less.
John J. Castellani is president and chief executive of the Pharmaceutical Research and Manufacturers of America Thinking of submitting an op-ed to the Washington Examiner? Be sure to read our guidelines on submissions for editorials, available at this link.
