The European Commission’s review of pharmaceutical incentives takes place in a context of controversy and debate on the sustainability of healthcare systems and pharmaceutical prices. These discussions are important and the American Chamber of Commerce to the EU (AmCham EU) is willing to be a constructive partner. However, we do not believe that a review of the EU Intellectual Property (IP) incentives framework is an effective means to manage the sustainability of healthcare systems across the EU and respond to patients’ individual needs.
IP incentives exist to stimulate innovation, science and research. They are a strength to the European economy across all sectors, particularly for high-risk investments in essential research areas. The cornerstone of the knowledge-based economy, they are key to maintaining the attractiveness of the EU as an investment location in a globalised world.
AmCham EU calls on the EU to strengthen the existing IP incentives framework in order to promote an innovation-friendly environment in the EU to the benefit of European patients and the research and development (R&D) companies that serve their health needs.
Reducing the scope or duration of IP incentives, particularly for sectors that depend the most on such mechanisms, risks jeopardising the EU’s industrial competitiveness and growth. The EU faces global competition to attract the best brains and the smartest capital. The temptation to move backwards on IP incentives will send a very negative signal to US and global investors as to the prospects of the European R&D sector, particularly for the biotechnology industry and start-ups.
Faced with the future burden of Europe’s ageing population, continued efforts to sustain and improve the existing incentive framework for pharmaceutical R&D is crucial for the development of future innovative therapies in areas of great demand.
AmCham EU calls on EU policymakers to take this into account when performing the IP incentives review for the pharmaceutical sector.
Read the full report HERE