Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on the day's biggest business stories
Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
Illustration: Aïda Amer/Axios
President Trump's new trade agreement with China includes patent protections that could be a big boon to drug companies.
Why it matters: China's enormous population is a lucrative market for pharma, and the country is also actively trying to build up its own domestic drug industry. But it's not guaranteed that China will actually abide by the agreement.
Details: The trade agreement would set up patent protections in China that are similar to U.S. law.
- It would help protect branded drugs from generic competition while they're still under patent protection.
- Drugmakers could also receive a patent extension if there's a delay during the approval process.
The big picture: This is good news for Big Pharma, especially after biologic protections were recently removed from the trade agreement with Mexico and Canada that's currently making its way through Congress.
- But the agreement doesn't include a measure giving drugs a certain patent exclusivity period, something the industry has been pushing for in trade deals in the recent past, specifically for biologics.
Between the lines: If China complies with the agreement, it'd be great for American drug companies, which could enter the Chinese market with the expectation that their patents would be respected. But it could also be good for China's budding drug industry.
- "This is a way for them to be able to create a domestic industry but also maintain affordability and access, which China is going to do anyway because it’s a controlled economy," said Chris Campbell, chief strategist at Duff & Phelps.
The bottom line, from Axios China reporter Bethany Allen-Ebrahimian:
- It's up to China to implement the legal protections it has agreed to in the deal -- but significantly, the agreement does include six pages outlining an evaluation and enforcement mechanism. That's a step in the right direction.
- But Chinese government officials have previously falsified data, and China has reneged on agreements in the past.
Go deeper: China offers drug companies market access in exchange for lower prices