The U.S. biopharmaceutical industry is a crown jewel of the American economy and a cornerstone of U.S. competitiveness and national security.
Our leadership in medical innovation supports millions of high quality American jobs, fuels world leading research and development and ensures U.S. patients get faster access to cutting edge medicines and cures.
During last week’s CNBC Invest in America Forum, Caroline Woods and I focused on one simple but critical question: Will the next generation of medical breakthroughs continue to be developed in America, or will we cede our leadership to other countries?
Why U.S. Biopharma Leadership Matters
Biopharmaceutical companies are making historic investments across the country. Driven in part by pro growth tax policies, companies have announced more than half a trillion dollars in new U.S. investments in places like Pennsylvania, Ohio, North Carolina, Maryland and Texas. Those investments support more than 5 million U.S. jobs and contribute an estimated $1.2 trillion to the American economy.
The United States also leads the world in developing new medicines. U.S. companies account for 55% of global biopharmaceutical R&D investment—more than any other country. Nearly 70% of new medicines are launched first in the U.S., giving American patients access months or even years earlier than patients elsewhere.
That leadership delivers real benefits: stronger economic growth, faster access to innovation and greater security against reliance on other countries for medicines.
The Threat We Face
But America’s leadership is not guaranteed. The global race for biopharmaceutical innovation is accelerating and competitors are closing the gap.
China, in particular, has made life sciences a national priority. It is backing that ambition with large scale public investment, stronger intellectual property protections and faster regulatory pathways. A decade ago, Chinese companies originated just 5% of global clinical trials. Today, that share is closer to 30%. Trials there often run 50% faster and 40% cheaper than in the U.S.
By comparison, the U.S. share of global clinical trials is about 35%. China isn’t just catching up. It’s flattening the innovation curve and moving new medicines from discovery to patients more quickly.
At the same time, internal barriers here at home threaten to slow innovation and undermine patient trust. A fragmented clinical trial system, inefficiencies in the drug supply chain and policies that risk importing foreign price controls all put unnecessary friction into a system that depends on speed, certainty and long term investment.
At a moment of intense global competition, these pressures raise a real risk: that future breakthroughs—and the jobs and economic growth that come with them—will increasingly happen outside the United States.
What We Can Do
Maintaining American leadership in medical innovation requires clear choices and sustained commitment. Three priorities stand out.
- Make it easier to start and run clinical trials in the United States. Today’s system is overly fragmented, often requiring lengthy, duplicative negotiations at individual hospital sites. Efforts underway at HHS and the FDA to streamline and centralize this process are essential. Advances in artificial intelligence also hold promise to accelerate trial design, enrollment and execution.
- Address inefficiencies in our health care system, particularly within the drug supply chain. Just three pharmacy benefit managers control roughly 80% of the market. Recent IQVIA data shows that insurers deny the first prescription a physician describes 70% of the time. And even when patients do receive their medicine, they’re often charged the full list price rather than the discounted price their insurer receives. Similar misaligned incentives exist in programs like 340B, where discounts intended to support patient care too often fail to reach patients. These barriers prevent timely access to medicines and undermine trust in the system.
- Avoid policies that throw sand in the gears of innovation. That means rejecting price controls and tariffs on medicines, maintaining strong intellectual property protections, sustaining investments in research, and ensuring a stable, well-resourced FDA. These policies are foundational to keeping biopharma investment, breakthroughs, and jobs anchored in the United States.
America’s leadership in life sciences matters. It means high-quality jobs, faster access to cutting-edge medicines, and greater security against dependence on other countries for critical medical breakthroughs. Preserving that leadership isn’t automatic. It’s a choice—and one we need to make now.
Watch my full CNBC discussion.
Stephen J. Ubl
Stephen J. Ubl is president and chief executive officer of the Pharmaceutical Research and Manufacturers of America (PhRMA), which represents America’s leading biopharmaceutical research companies. The U.S. biopharmaceutical sector directly employs more than 800,000 Americans and invests more than $100 billion in research and development annually – more than any other industry in America.
Ubl leads PhRMA’s work preserving and strengthening a health care and economic environment that encourages medical innovation, new drug discovery and access to life-saving medicines. Ubl is recognized around the world as a leading health care advocate and policy expert who collaborates successfully with diverse stakeholder groups – including patient and physician groups, regulators, public and private payers, and global trade organizations – to help ensure timely patient access to innovative treatments and cures. The New York Times writes, “If anyone can find areas of agreement with the critics, or at least work productively with them, it may be Mr. Ubl. He is more conversant with the intricacies of health policy, and more adept at the politics."
Previously, Ubl served as president and CEO of medical technology association AdvaMed, where he helped facilitate landmark reforms related to the U.S. Food and Drug Administration product review process and Medicare’s coverage and reimbursement of medical technologies. He led the industry’s defense of breakthrough R&D, successfully delaying an innovation-stifling device tax, and, in 2013, was recognized by a leading industry publication as one of 10 people to have a lasting impact on the medical technology industry.
Ubl has worked extensively with patient advocacy organizations in health policy, including longstanding service on the board of the National Health Council, a leading umbrella organization for voluntary health care organizations and has been personally involved with JDRF (formerly known as the Juvenile Diabetes Research Foundation).
He is routinely recognized as one of Washington’s most effective advocates. Ubl has been recognized on Business Insider’s “DC Healthcare Power Players” and Modern Healthcare’s “100 Most Influential People in Healthcare.” He is identified as a top health influencer by Medical Marketing & Media and PR Week magazines.
https://www.linkedin.com/in/steveubl/
President and Chief Executive Officer