BENTONVILLE, Ark., December 20, 2021 (GLOBE NEWSWIRE) – Today, Heartland Forward released a new research report, Economic Savings in America: A Story of Public-Private Partnership in Rapid COVID-19 Vaccine Development and Deployment, estimating that the US economy has recovered faster by $ 438 billion in real GDP terms in 2021, or 2.3% of real gross domestic product (GDP) than it would have without a vaccine. This huge economic benefit was due to the unprecedented speed and efficiency of the creation of COVID-19 vaccines and made possible through historic public-private partnerships between the federal government, universities and biopharmaceutical companies.
“After the health, economic and emotional devastation of the COVID-19 pandemic, our research is helping to shed light on a silver lining in the pandemic: the unprecedented speed and effectiveness of COVID-19 vaccines. For this reason, we estimate $ 438 billion in savings for the US economy in 2021, ”said Anusuya Chatterjee, director of health research at Heartland Forward. “While there are a lot of uncertainties regarding Omicron and its future variants, with the right tools and the facilitation of this vaccine, we will continue to reap economic benefits. The United States should learn the lessons of incredible public-private partnerships and deploy these strategies to deal with future crises. “
This report details how these vaccines and the resulting economic benefits were made possible through the unique public-private partnership in the United States between government institutions such as the NIH, academic institutions, and biopharmaceutical companies. Looking ahead, the report highlights the delicate balance our policymakers are struggling to reduce drug costs for consumers while maintaining incentives to invest in medical innovation.
In most cases, US biopharmaceutical companies take huge financial risks to innovate and bring vaccines and therapies to market. According to a 2016 article published in the Journal of Health Economics on innovation in the pharmaceutical industry, the research and development (R&D) costs of bringing a new product to market through the review process. United States Food and Drug Administration (FDA) often takes more than 10 years and averages $ 2.6 billion. Additionally, less than 12% of drug candidates entering Phase 1 clinical trials are FDA approved. To encourage and enable the continued innovations of pharmaceutical companies, the federal government often takes steps to support private companies. Government involvement generally takes the form of federal investments at an early stage, including through
the National Institutes of Health (NIH) and federally funded university research. In the case of the COVID-19 vaccine development, NIH scientists, in partnership with universities and private companies, created a prototype coronavirus to study the spike protein, drawing on decades of tax dollars government spending on NIH basic research facilities for HIV and other viruses.
Public-private partnerships, the foundation for the development of vaccines and drug therapies in the United States, have been critical to the rapid development and deployment of the COVID-19 vaccine. Policy changes that reduce incentives could prevent us from tackling the next pandemic and prevent our economy from getting back on track at the speed we have been able to date.
Blake Woosey Heartland Forward 479-957-6301 [email protected]
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