Trump kills trade deal that would have benefited pharma and potentially raised drug costs
Skip to main content
MDHC_Logotype_white
Subscribe
  • My Account
  • Login
  • Subscribe
  • News
    • This Week's News
    • COVID-19
    • Providers
    • Insurance
    • Government
    • Finance
    • Technology
    • Safety & Quality
    • People
    • Regional News
    • Digital Edition
    • CMS approves rule forcing insurers to ease prior authorization
      Biden unveils $1.9T plan to stem virus and steady economy
      HHS removes some requirements for opioid treatment prescribing
      Verma: CMS tried to ‘infuse' free-market competition across healthcare during Trump era
    • Biden unveils $1.9T plan to stem virus and steady economy
      Nursing home staff COVID-19 vaccination: A work in progress
      California hospitals prepare ethical protocol to prioritize lifesaving care
      Expanded vaccine rollout in U.S. spawns a new set of problems
    • Trenda Ray
      Q&A: Arkansas nursing leader looking for creative staffing solutions as COVID cases surge
      The Check Up: Trenda Ray
      The Check Up: Trenda Ray of the University of Arkansas for Medical Sciences
      Cook Lydia 4x6_i.jpg
      Northeast Ohio health systems increase community benefit values in 2019
      Vaccine rollout hits snag as health workers balk at shots
    • CMS approves rule forcing insurers to ease prior authorization
      COVID-19 still a big uncertainty for insurers in 2021
      Health insurers' outlook boosted after Dems' Georgia win
      humana_i.jpg
      Humana supports Ohio not-for-profits with $500,000
    • CMS approves rule forcing insurers to ease prior authorization
      Verma: CMS tried to ‘infuse' free-market competition across healthcare during Trump era
      CMS axes MFAR rule for good
    • Operation Warp Speed to bump up McKesson's stock price
      Reporter's notebook: J.P. Morgan's 2021 health conference
      Hospitals, nursing homes get more time to file cost reports
      Hospitals' 2020 fundraising on pace to top 2019
    • 5 things to know about Google's $2.1B Fitbit acquisition
      Providence bets on machine-learning, consolidating data centers
      Mental health treatment was most common telehealth service during COVID
      Broad, Verily take Terra bioinformatics platform to Microsoft Azure cloud
    • Chance of COVID-19 triage care looms over Arizona hospitals
      U.S. ramps up vaccinations to get doses to more Americans
      367146427.jpg
      Should businesses mandate that staff get the COVID vaccine?
      Smartphone
      'No mobile phone' phobia on the rise
    • Tower Health's finance chief resigning after years of steep losses
      AHRQ director Gopal Khanna resigns in response to Capitol riot
      Brigham president stepping down after Moderna controversy
      Meghan Joyce
      Oscar COO Meghan Joyce describes her management approach
    • Midwest
    • Northeast
    • South
    • West
  • Insights
    • ACA 10 Years After
    • Best Practices
    • InDepth Special Reports
    • Innovations
    • The Affordable Care Act after 10 years
    • New care model helps primary-care practices treat obesity
      doctor with patient
      COVID-19 treatment protocol developed in the field helps patients recover
      Rachel Wyatt
      Project to curb pressure injuries in hospitals shows promise
      Yale New Haven's COVID-19 nurse-staffing model has long-term benefits
    • Dr. James Hildreth
      How medical education can help fight racism
      Modern Healthcare InDepth: Breaking the bias that impedes better healthcare
      Videos: Healthcare industry executives describe their encounters with racism
      Michellene Davis
      Healthcare leadership lacks the racial diversity needed to reduce health disparities
      Hospital divided into multiple pieces
      Health systems may be warming to offshoring, a mainstay practice for insurers
    • A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      self service station
      COVID-19 pushes patient expectations toward self-service
      Targeting high-risk cancer patients with genetics
      A nurse holds up a phone with a message to a family member saying surgery has started.
      Texting, tablets help hospitals keep family updated on patient care
  • Transformation
    • Patients
    • Operations
    • Care Delivery
    • Payment
    • Highmark Health inks six-year cloud, tech deal with Google
      Study: 1 in 5 patients report discrimination when getting healthcare
      HHS proposes changing HIPAA privacy rules
      Android health records app launches at 230 health systems
    • California hospitals prepare ethical protocol to prioritize lifesaving care
      Amazon, JPMorgan Chase, Berkshire Hathaway disband Haven
      Digital pathways poised to reshape healthcare continuum in 2021
      Healthcare was the hardest hit by supply shortages across all U.S. industries
    • A woman with a wearable sensor talking to her provider.
      Wearable sensors help diagnose heart rhythm problems in West Virginia
      New care model helps primary-care practices treat obesity
      How hospitals are building on COVID-19 telehealth momentum
      Researchers: Hospital price variation exacerbates health inequities
    • MedPAC votes to boost hospital payments, freeze or cut other providers
      Most Next Gen ACOs achieved bonuses in 2019
      Congress recalibrates Medicare Physician Fee Schedule after lobbying
      CMS approves rule to encourage value-based drug pricing
  • Data/Lists
    • Rankings/Lists
    • Interactive Databases
    • Data Points
    • Health Systems Financials
      Executive Compensation
      Physician Compensation
  • Op-Ed
    • Bold Moves
    • Breaking Bias
    • Commentaries
    • Letters
    • Vital Signs Blog
    • From the Editor
    • Wellstar CEO calls adapting for the pandemic her bold move
      Howard P. Kern
      Recognizing the value of telehealth in its infancy
      Dr. Stephen Markovich
      A bold move helped take him from family doctor to OhioHealth CEO
      Dr. Bruce Siegel
      Why taking a hospital not-for-profit was Dr. Bruce Siegel’s boldest move
    • Barry Ostrowsky
      Ending racism is a journey taken together; the starting point must be now
      Laura Lee Hall and Gary Puckrein
      Increased flu vaccination has never been more important for communities of color
      John Daniels Jr.
      Health equity: Making the journey from buzzword to reality
      Mark C. Clement and David Cook
      We all need to 'do something' to fight inequities and get healthcare right, for every patient, every time
    • Healing healthcare: some ideas for triage by the new Congress, administration
      Dr. Sachin H. Jain
      Medicare for All? The better route to universal coverage would be Medicare Advantage for All
      Connectivity: a social determinant of health that can exacerbate all the others
      Taking my shot at building trust
    • Letters: Eliminating bias in healthcare needs to be ‘deliberate and organic’
      Letters: Maybe dropping out of ACOs is a good thing for patients
      Letters: White House and Congress share blame for lack of national COVID strategy
      Letters: VA making strides to improve state veterans home inspections
    • Sponsored Content Provided By Optum
      How blockchain could ease frustration with the payment process
      Sponsored Content Provided By Optum
      Three steps to better data-sharing for payer and provider CIOs
      Sponsored Content Provided By Optum
      Reduce total cost of care: 6 reasons why providers and payers should tackle the challenge together
      Sponsored Content Provided By Optum
      Why CIOs went from back-office operators to mission-critical innovators
  • Awards
    • Award Programs
    • Nominate
    • Previous Award Programs
    • Other Award Programs
    • Best Places to Work in Healthcare Logo for Navigation
      Nominations Open - Best Places to Work in Healthcare
      Nominations Open - Health Care Hall of Fame
      Nominations Open - 50 Most Influential Clinical Executives
    • 100 Most Influential People
    • 50 Most Influential Clinical Executives
    • Best Places to Work in Healthcare
    • Health Care Hall of Fame
    • Healthcare Marketing Impact Awards
    • Top 25 Emerging Leaders
    • Top 25 Innovators
    • Top 25 Minority Leaders
    • Top 25 Women Leaders
    • Excellence in Nursing Awards
    • Design Awards
    • Top 25 COOs in Healthcare
    • 100 Top Hospitals
    • ACHE Awards
  • Events
    • Conferences
    • Galas
    • Webinars
    • COVID-19 Event Tracker
    • Leadership Symposium
    • Healthcare Transformation Summit
    • Women Leaders in Healthcare Conference
    • Workplace of the Future Conference
    • Strategic Marketing Conference
    • Social Determinants of Health Symposium
    • Best Places to Work Awards Gala
    • Health Care Hall of Fame Gala
    • Top 25 Minority Leaders Gala (2022)
    • Top 25 Women Leaders Gala
  • Listen
    • Podcast - Next Up
    • Podcast - Beyond the Byline
    • Sponsored Podcast - Healthcare Insider
    • Video Series - The Check Up
    • Sponsored Video Series - One on One
    • Carter Dredge
      Next Up Podcast: Ready, set, innovate! Innovation and disruption in healthcare
      Next Up Podcast: COVID-19, social determinants highlight health inequities — what next?
      Ceci Connolly
      Next Up Podcast: How to navigate the murky post-election waters
      Next Up Podcast: Saving Rural Health
    • An older man wearing a mask receiving a vaccine.
      Beyond the Byline: Verifying information on the chaotic COVID-19 vaccine rollout
      doctor burnout
      Beyond the Byline: How healthcare supply chain struggles contribute to employee burnout
      Beyond the Byline: Covering race and diversity in the healthcare industry
      Beyond the Byline: How telehealth utilization has impacted investor-owned company earnings
    • Leading intention promote diversity and inclusion
      Introducing Healthcare Insider Podcast
    • The Check Up: Trenda Ray
      The Check Up: Trenda Ray of the University of Arkansas for Medical Sciences
      The Check Up: Dr. Kenneth Davis
      The Check Up: Dr. Kenneth Davis of Mount Sinai Health System
      The Check Up: Dr. Thomas McGinn
      The Check Up: Dr. Thomas McGinn of CommonSpirit Health
      The Check Up: Mark Ganz
      The Check Up: Mark Ganz of Cambia Health Solutions
    • Video: Ivana Naeymi Rad of Intelligent Medical Objects
  • MORE +
    • Advertise
    • Media Kit
    • Newsletters
    • Jobs
    • People on the Move
    • Reprints & Licensing
MENU
Breadcrumb
  1. Home
  2. Government
January 23, 2017 12:00 AM

Trump kills trade deal that would have benefited pharma and potentially raised drug costs

Adam Rubenfire
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    The Trans-Pacific Partnership's effects on drug prices and patents alarmed some physician-advocates. Above, representatives from the U.S. and Peru met in Washington in April 2015 to discuss trade issues related to the pact.

    (Story updated January 24, 2017)

    President Donald Trump has signed an order withdrawing the U.S. from the Trans-Pacific Partnership that has been contested by both healthcare companies and activists.

    President Barack Obama had ended negotiations on the deal, which extends greater protection for pharmaceutical patents across a dozen Pacific Rim countries. Obama, however, failed to garner enough support in Congress to ratify its passage into law. Trump had pledged during his campaign to remove the U.S. from the partnership, which he called a “horrible deal.” It was also criticized by the Democratic presidential candidate Hillary Clinton.

    The deal was never about “free trade,” but rather about protecting the interests of brand-name pharmaceutical companies, said Peter Maybarduk, director of Public Citizen's Access to Medicines Program. Moving forward, the Trump administration should encourage competition in the sector, he said.

    It would have eliminated 18,000 taxes that other countries place on goods from the U.S. The nations that have signed the TPP are the U.S., Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. But the agreement had few steadfast fans, as activists feared its intellectual property protections would increase global pharmaceutical prices, while the industry felt those protections didn't go far enough.

    Both consumer group Public Citizen and aid organization Doctors Without Borders decried the deal's intellectual property provisions that required participating countries to extend data protection for biologic medicines—drugs produced with living matter—for at least five to eight years. They argued that doing so would keep biosimilars—the reproduced “generic” versions of biologics—from entering the market and bringing prices down.

    Pharmaceutical Research and Manufacturers of America, which represents the U.S. drug industry, was concerned that the intellectual property protections weren't strong enough. Drugmakers supported 12 years of data exclusivity to match the period required under U.S. federal law. Some of the countries in the deal don't have any exclusivity laws for biologics.

    “PhRMA is supportive of bilateral and multilateral free trade agreements that include strong intellectual property protections, enhance market access and help us deliver lifesaving medicines to the world’s patients,” said Stephen Ubl, the lobby’s CEO. “As the incoming administration and Congress prepare to shape our trade agenda, we look forward to working with our government’s leadership to secure smart, fair trade agreements that open new markets and help grow our economy and create better, higher-paying jobs.”

    The Advanced Medical Technology Association, known as AdvaMed, has been supportive of the deal, saying early last year that the deal would combat “corrupt business practices” and establish global “codes of conduct” for device trade. AdvaMed did acknowledge, however, that certain issues and concerns raised by other business sectors and Congress needed to be solved.

    AdvaMed offered a short, forward-looking statement on Monday following Trump's order.

    “The medical technology industry has consistently supported trade agreements that open markets and improve patient access to needed medical advancements. We look forward to working with the new administration as it pursues these pro-innovation, pro-patient goals,” said Ralph Ives, AdvaMed's executive vice president of global strategy and analysis.

    “I think the Trump administration should use its power under existing law to make it clear we will allow generic competition,” Public Citizen's Maybarduk said. “They should work with legislators, and legislators should push for a comprehensive agenda on drug pricing, recognizing that monopoly power is the core of the problem.”

    The Generic Pharmaceutical Association said in a statement Tuesday that policymakers should develop patent rules that balances incentives for innovation with a desire for generic competition.. GPhA also called on the Trump administration and Congress to stop brand drug companies from interfering in generic drug development and access.

    “Increasing competition from generic drugs and biosimilars is a proven way to lower health spending,” GPhA said. “We look forward to working with the Trump administration, bipartisan members of Congress and others on policies that encourages access to more affordable medicines in the United States and around the world.”

    Judit Rius Sanjuan, the U.S. manager for Doctors Without Borders' Access Campaign, said her organization believes it's possible to enact a future trade agreement that satisfies both the private sector and NGOs that are concerned about drugmaker monopolies. “We would like to see an agreement that is a win-win for innovation and access,” she said.

    But Sanjuan said it's too early to know what the Trump administration's next steps will be, and it's hard to tell how the White House will treat the interests of pharmaceutical companies and NGOs. While the Republican party tends to be pro-industry, Trump chastised the pharmaceutical industry's pricing practices at many points throughout his campaign. He has also said that he supports importing drugs from other countries and allowing Medicare to directly negotiate on drug prices, which are both measures that are opposed by PhRMA.

    Early in his campaign, Trump called the TPP a “horrible deal … designed for China to come in, as they always do, through the back door and totally take advantage of everyone.” China isn't involved in the partnership; in fact, it's possible that China could swoop in with its own deal to entice Pacific Rim countries.

    Sen. John McCain (R-Ariz.), chairman of the Senate Armed Services Committee and a former presidential candidate, said in a statement that withdrawing from the TPP was a “serious mistake” that would have lasting consequences for the U.S. economy and its position in the Asia-Pacific region.

    “This decision will forfeit the opportunity to promote American exports, reduce trade barriers, open new markets, and protect American invention and innovation,” McCain said. “It will create an opening for China to rewrite the economic rules of the road at the expense of American workers.”

    Letter
    to the
    Editor

    Send us a letter

    Have an opinion about this story? Click here to submit a Letter to the Editor, and we may publish it in print.

    Recommended for You
    Verma: CMS tried to ‘infuse' free-market competition across healthcare during Trump era
    Verma: CMS tried to ‘infuse' free-market competition across healthcare during Trump era
    HHS to distribute $22 billion to aid COVID-19 testing, vaccination
    HHS to distribute $22 billion to aid COVID-19 testing, vaccination
    Sponsored Content
    Get Free Newsletters

    Sign up for free enewsletters and alerts to receive breaking news and in-depth coverage of healthcare events and trends, as they happen, right to your inbox.

    Subscribe Today

    The weekly magazine, websites, research and databases provide a powerful and all-encompassing industry presence. We help you make informed business decisions and lead your organizations to success.

    Subscribe
    Connect with Us
    • LinkedIn
    • Twitter
    • Facebook
    • RSS
    • Instagram

    Stay Connected

    Join the conversation with Modern Healthcare through our social media pages

    MDHC_Logotype_white
    Contact Us

    (877) 812-1581

    Email us

     

    Resources
    • Contact Us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Editorial Dept
    • Submission Guidelines
    • Code of Ethics
    • Awards
    • About Us
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Modern Healthcare
    Copyright © 1996-2021. Crain Communications, Inc. All Rights Reserved.
    • News
      • This Week's News
      • COVID-19
      • Providers
      • Insurance
      • Government
      • Finance
      • Technology
      • Safety & Quality
      • People
      • Regional News
        • Midwest
        • Northeast
        • South
        • West
      • Digital Edition
    • Insights
      • ACA 10 Years After
      • Best Practices
      • InDepth Special Reports
      • Innovations
    • Transformation
      • Patients
      • Operations
      • Care Delivery
      • Payment
    • Data/Lists
      • Rankings/Lists
      • Interactive Databases
      • Data Points
    • Op-Ed
      • Bold Moves
      • Breaking Bias
      • Commentaries
      • Letters
      • Vital Signs Blog
      • From the Editor
    • Awards
      • Award Programs
        • 100 Most Influential People
        • 50 Most Influential Clinical Executives
        • Best Places to Work in Healthcare
        • Health Care Hall of Fame
        • Healthcare Marketing Impact Awards
        • Top 25 Emerging Leaders
        • Top 25 Innovators
        • Top 25 Minority Leaders
        • Top 25 Women Leaders
      • Nominate
      • Previous Award Programs
        • Excellence in Nursing Awards
        • Design Awards
        • Top 25 COOs in Healthcare
      • Other Award Programs
        • 100 Top Hospitals
        • ACHE Awards
    • Events
      • Conferences
        • Leadership Symposium
        • Healthcare Transformation Summit
        • Women Leaders in Healthcare Conference
        • Workplace of the Future Conference
        • Strategic Marketing Conference
        • Social Determinants of Health Symposium
      • Galas
        • Best Places to Work Awards Gala
        • Health Care Hall of Fame Gala
        • Top 25 Minority Leaders Gala (2022)
        • Top 25 Women Leaders Gala
      • Webinars
      • COVID-19 Event Tracker
    • Listen
      • Podcast - Next Up
      • Podcast - Beyond the Byline
      • Sponsored Podcast - Healthcare Insider
      • Video Series - The Check Up
      • Sponsored Video Series - One on One
    • MORE +
      • Advertise
      • Media Kit
      • Newsletters
      • Jobs
      • People on the Move
      • Reprints & Licensing