By Dan Leonard, WWFH Executive Director
Intellectual property (IP) plays a crucial role in the success of the pharmaceutical and biotech industries. From patient health to multi-level economics, the current U.S. IP system ensures scientists, researchers and developers have a clear path to benefit patients and public health.
Here are 10 reasons why strong patents and IP protections are necessary for biopharmaceutical innovation to thrive.
Promoting Competition. The current IP system and life cycle of a prescription drug ensures no one company can command a monopoly on treating a condition. Choice, market competition and the value of generic versions of medicines after patents expire increase accessibility.
Facilitating Medical Advancements: Robust IP laws encourage the development of new treatments and therapies, leading to significant advancements in medical science and improved patient outcomes.
Incentivizing Investments: Developing new drugs and biotech products involves substantial financial commitment and risk. IP protections provide support for venture capital investments and other forms of funding high-cost, high-need projects.
Supporting Development Costs: Bringing a new drug to market can cost billions of dollars. Strong IP protection helps companies recover these costs through exclusive rights to market their products for a defined period.
Encouraging Long-Term Research: Biopharmaceutical innovations often require years, if not decades, of research and development. IP protections provide a secure environment for these long-term projects to reach fruition and see through the benefit for patients.
Balancing Innovation and Affordability. IP protections grant exclusive rights to investors and incentivize discoveries. Over time, the IP life cycle then results in the availability of generic alternatives and biosimilars, which can increase access to affordable medications.
Driving Economic Growth: The biopharmaceutical and related sectors contribute significantly to economic growth at the local, state and national levels. IP protections play a critical role in job creation, industry growth, vendor contributions and overall economic development.
Encouraging Collaboration: IP protection facilitates licensing agreements and partnerships between companies, universities and research institutions, enhancing the development and dissemination of new technologies.
Fostering Global Advantages: Strong IP rights help U.S. pharmaceutical and biotech companies maintain a competitive edge in the global market by protecting their innovations from interference or foreign competitors’ copying.
Promotes Global Health: Strong IP laws support the development of new drugs – which is more important now than ever. This helps scientists and biopharmaceutical leaders quickly and effectively address global health challenges, including pandemics and rare diseases.
Learn why patents and IP are the bedrock of American invention. Go to https://www.weworkforhealth.org/ip.