Biden administration values price controls over innovation | Opinion

The United States of America was founded on one guiding principle: freedom.

This freedom courses through so much of our society, providing a launching pad for creativity that has made our country the land of opportunity it is today.

In an effort to embolden new ideas and help them come to fruition in the United States, Congress enacted the Bayh-Dole Act. The landmark bipartisan legislation allows universities, small businesses and nonprofit institutions to own intellectual property created from federally funded research, allowing them to license these inventions for research and development and commercialize them.

Prior to Bayh-Dole, the federal government owned all inventions made with federal funding. But after the law passed, they turned ownership over to those that had the resources to bring inventions to market and transformed our innovation economy.

During just a two-decade period, Bayh-Dole supported the creation of 5.9 million jobs and contributed $865 billion to U.S. gross domestic product. One of the most significant areas where Bayh-Dole made a difference has been health care, where upwards of 200 drugs and vaccines have been developed owing to the law.

In the health care system, Bayh-Dole creates a partnership between private and public sectors, ultimately turning basic government-funded biomedical research into tested and approved products. The investment encourages domestic growth and serves as the catalyst for new research opportunities, with royalties from products going back into universities to further advance education and discovery.

In adopting Bayh-Dole, Congress recognized the privilege of operating in a free market and the unlimited possibilities that can be unlocked when public and private entities work together to spark innovation.

But now, that freedom could be under attack.

When Congress originally passed Bayh-Dole, they included a “march-in rights” clause to be employed if a licensed invention is not being made available for public use. This clause was only built in to be used in very limited incidents, but the Biden administration has recently announced that they are reviewing the provision to determine how and when march-in rights are to be used. One of the ideas on the table? Using the clause as a price-control mechanism.

If the march-in clause is used beyond its original intention, the consequences for innovation in our nation, and right here in Florida, would be devastating. Our biopharmaceutical industry produces $64 billion in economic output and supports 36,000 jobs in the Sunshine State — all of which will be at risk if we change the use of Bayh-Dole now.

The bottom line? The over 40-year precedent must stand.

As President of the Florida State Hispanic Chamber of Commerce, I am all about freedom of the marketplace. I’m concerned that this new interpretation of Bayh-Dole’s march-in rights will limit that freedom and discourage the development of technologies and treatments that have the potential to save lives.

If we compromise the purpose and function of Bayh-Dole, we risk losing its benefits to people and patients around the globe. Employing Bayh-Dole to establish price controls could damage America’s innovation ecosystem and disrupt the flow of potential treatments that countless patients eagerly anticipate.

The prescription drug industry stands to be among the hardest hit by this shift. For years, our free and collaborative market has led to the development of lifesaving medications, with drug companies often investing upwards of billions of dollars for the costly clinical trials required to bring a new drug to market.

Government must get out of the way so we can see longer life expectancies and better life outcomes. It’s time we return to our roots when it comes to American innovation and allow the market to stand on a foundation of freedom.

Julio Fuentes is the president and CEO of the Florida State Hispanic Chamber of Commerce.