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.
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