WASHINGTON, DC – Recently, the U.S. Department of the Treasury proposed sweeping new restrictions under the Comprehensive Outbound Investment National Security (COINS) Act, which in part prohibits certain investments by US persons in companies abroad.

The sweeping new proposed regulations add sectors beyond those listed in the law.  One provision seeks to add biotechnology as a new prohibited technology sector.  The result will likely prevent Americans from investing in companies developing medical treatments, including innovative small-molecule drugs and other lifesaving medicines.

 “Cutting off American partnerships abroad will have serious consequences for patients who depend on our pharmaceutical supply chain,” said HLF President Mario H. Lopez. “We should be prioritizing competition, encouraging private investment, and strengthening domestic manufacturing, not enacting government barriers that increase costs and limit patient access to medications.”

The stakes for patients are real.  Nearly 700 medicines that Americans rely on contain at least one starting material sourced abroad.  And 41% of the key starting materials used to manufacture U.S.-approved drug ingredients come exclusively from China.  The reality of the interconnected global pharmaceutical supply chain means that onerous investment restrictions could easily disrupt access to critical materials, drive up costs, and ultimately put patients at risk.

Instead, the administration should pursue a targeted approach that addresses legitimate national security concerns while preserving international partnerships that ensure American patients continue to benefit from access to medicines and help drive research and development of new cures and treatments.