BIO survey: Tariffs threaten innovation, access to cures

U.S. tariffs on imports could increase the cost of biotechnology operations, threatening innovation that helps patients, according to a survey of biotech firms by the Biotechnology Innovation Organization (BIO).

Nearly 90% of U.S. biotech companies rely on imported components for at least half of their Food and Drug Administration (FDA)-approved products, and they say tariffs would hurt their business, the survey of BIO member companies found.

“This survey demonstrates the far-reaching and potentially damaging impacts of the proposed tariffs on our biotechnology industry, on biomedical research and on patients,” said BIO President & CEO John F. Crowley.

According to the survey of BIO member companies, tariffs will:

• Reduce access to affordable medicines: 94% of biotech firms anticipate surging manufacturing costs from tariffs on imports from the European Union. Tariffs on Canadian imports would negatively impact 82% of respondents and 70% anticipate higher manufacturing costs from tariffs on China. The U.S. currently lacks domestic manufacturing capacity to meet demand. To protect patients, medicines have historically been exempt from tariffs.
• Stall medical innovation: Proposed tariffs on the EU would force 50% of companies to scramble for new research and manufacturing partners. Half of those surveyed say they would have to rework or potentially delay regulatory filings, jeopardizing the pace of innovation.
• Create red tape: In the face of sudden tariffs, 80% of biotech firms report needing at least 12 months to find alternative suppliers, and a remarkable 44% would require more than two years—delays that could disrupt the pipeline of breakthrough treatments.
• Complicate efforts to obtain investment: “More than 50% of biotech firms predict ‘increased difficulty’ in funding and conducting research if EU tariffs are enacted,” the survey found.

Maintaining U.S. biotech superiority

To secure the U.S. supply chain and ensure America remains the global leader in medical innovation, BIO concludes it is necessary to:

• Expedite regulatory pathways to accelerate the approval of life-saving treatments.
• Strengthen capital formation to fuel the next generation of biotech breakthroughs.
• Protect and advance strong intellectual property rights, the foundation of America’s innovation.

“We fully support strong policies and programs that incentivize the manufacture of medicines here in America. Re-onshoring key parts of the biotechnology supply chain to the U.S. and our allies and strengthening the American manufacturing base should be a high priority for both national and economic security,” said Crowley.

“It will take years, though, for this shift and we need to be mindful of the negative consequences of these proposed tariffs,” he added. “We look forward to working with the Administration and Congress to develop incentives and policies that drive private sector dollars to spur a renaissance of U.S. biotech manufacturing.”