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American Focus > Blog > Health and Wellness > Reclaiming America’s Biotech Edge Before It’s Too Late
Health and Wellness

Reclaiming America’s Biotech Edge Before It’s Too Late

Last updated: April 22, 2025 8:25 am
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Reclaiming America’s Biotech Edge Before It’s Too Late
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The importance of economic security and national security cannot be overstated, especially in the pharmaceutical sector. As J.P. Morgan CEO Jamie Dimon pointed out, our adversaries should not be seen as mere business partners. The recent pandemic has highlighted the vulnerabilities in our supply chains, particularly in the production of active pharmaceutical ingredients (APIs).

It is crucial for the United States to reevaluate its approach to capital investment, intellectual property, and national reserves in order to maintain its global competitiveness in the pharmaceutical industry. Reshoring production is not just about imposing tariffs; it is about safeguarding our strategic assets and promoting long-term strength over short-term gains.

The reliance on foreign sources for APIs poses a significant risk to national security and healthcare continuity. Just as no nation would outsource its entire energy supply to geopolitical rivals, the U.S. must reduce its dependence on foreign pharmaceutical ingredients. Viewing APIs as strategic assets akin to oil reserves is essential for protecting our national interests.

The conversation surrounding tariffs, tax incentives, and direct investment should shift from seeking the cheapest option to prioritizing innovation, independence, and resilience in the long run. A recent report by the Wall Street Journal highlighted the need for a $15 billion federal investment to bolster U.S. biotech and pharmaceutical capacity in response to China’s strategic gains in the industry.

The U.S. must learn from past mistakes of subsidizing its decline by transferring knowledge and intellectual property to rival powers like China. By transitioning critical biomanufacturing capacity and pharmaceutical supply chains back to American soil and its allies, the country can strengthen its economic independence without resorting to isolationism.

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Balancing the principles of free trade with national defense and economic independence is crucial in today’s global marketplace. Fair, transparent, and enforceable terms, including robust protections for intellectual property, are necessary to ensure a level playing field for all countries.

The pharmaceutical industry thrives on long-term investments in research and development. However, the current emphasis on short-term gains over long-term innovation poses a threat to America’s leadership in this sector. A shift towards a new value framework that prioritizes innovation, resilience, and national strength is imperative for sustaining the country’s competitive edge.

Building a strategic reserve of APIs and strengthening domestic manufacturing capabilities are essential steps in preparing for future crises. By making the U.S. the most attractive destination for pharmaceutical investment and innovation, the country can redefine the core infrastructure of healthcare and ensure its long-term sustainability.

In conclusion, the stakes are high when it comes to economic, scientific, geopolitical, and public health considerations in the pharmaceutical industry. A comprehensive long-term strategy that promotes fair trade, protects intellectual property, and incentivizes long-term value creation is essential for securing America’s position as a global leader in pharmaceutical innovation.

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