Incubate Raises Concern About President Biden’s Support of WTO TRIPS Waiver

In response to the Biden Administration’s recent announcement that the U.S. will support waiving intellectual property protections for COVID-19 vaccines, the Executive Director of Incubate, John Stanford, issued the following statement


05.06.2021

Washington, DC – In response to the Biden Administration’s recent announcement that the U.S. will support waiving intellectual property protections for COVID-19 vaccines, the Executive Director of Incubate, a coalition of life science venture capital organizations focused on raising awareness of the critical role venture capital plays in the development of new therapies, medicines, devices and technology, John Stanford, issued the following statement:

“We are disappointed the Biden Administration will support negotiations to waive the patent protections of COVID-19 technologies—an exercise that will do nothing to help the billions of global citizens awaiting vaccines developed by innovative biopharmaceutical companies. As has been noted by life science investors, philanthropists, academics, policymakers and even the President’s own scientific advisors, stripping IP protections will not advance efforts to bring much-needed relief to the world. Instead, it suggests that decades of US commitment to IP, which fueled the development of today’s medicines, cannot be relied upon.

This decision shows a fundamental misunderstanding of the reality of drug development. Private capital is critical to moving basic research through to commercialization. The only protection investors have to recoup that value is the protection provided by patents. The important role of government support in the private sector development of vaccines for COVID-19 should not be understated, but ultimately the single greatest force in reacting to this pandemic was the nearly 1,000 companies that pivoted to developing a response to this novel threat.

There will be future crises and it is our hope that the US will lead the world in responding to them. But this path leads toward other world powers like Russia and China absorbing our scientific prowess, and nothing in return. Moreover, waiving patent protections will not alleviate the crisis of COVID-19 vaccine availability in the developing world.

Finally, and perhaps most tragically, weakening IP protections in the face of “extraordinary circumstances” sends two signals to the thousands of Americans committed to the next generation of drugs. First, it says that IP and the rule of law is not universally guaranteed. Second, it disincentivizes most the development of treatments, vaccines, and cures for the diseases prevalent in the developing world. Investors will resist efforts to develop innovations we are so close to having, like vaccines for HIV and malaria, and effective treatments for the grave threat of anti-microbial resistance (AMR). These are not crises within our own borders, but humanitarian challenges around the world.

The Biden Administration – well-intentioned or not – is showing that if the global urgency is great enough, the IP underlying all innovation, may not be respected. This is the worst possible outcome for patients.”

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Incubate is a coalition of venture capital organizations representing the patient, corporate and investment communities with the primary aim to educate policymakers on the role of venture in bringing promising ideas to patients in need.