A new report from Unleash Prosperity, obtained by the Washington Reporter, argues that reforms to the Food and Drug Administration’s (FDA) drug approval process could generate between $10 trillion and $49 trillion in economic value while bringing lifesaving treatments to patients years sooner.
The report, “The Multi-Trillion Dollar Opportunity in Reforming the FDA,” authored by University of Chicago economist and former White House Council of Economic Advisers Chairman Tomas Philipson, finds that reducing FDA approval timelines by just one year could unlock more than $10 trillion in economic value. Accelerating approvals by up to six years could generate as much as $49 trillion in benefits by encouraging medical innovation and speeding patient access to new therapies, it found.
The report’s findings were quickly praised by experts in the field. “The FDA has been in need of key reforms for years,” Joe Grogan, former Domestic Policy Advisor to President Donald Trump, and current president of Public Policy Solutions, told the Reporter. “This report has some outstanding suggestions to get treatments and cures to patients more quickly. Biopharmaceutical innovation doesn’t just benefit American patients; it also is essential for the American economy.”
According to the report, FDA effectiveness reviews are often responsible for significant delays in bringing new drugs and medical devices to market. The analysis argues that lengthy approval timelines impose substantial costs on patients waiting for new treatments while simultaneously reducing incentives for companies to invest in research and development.
Unleash Prosperity is a national nonprofit organization focused on advancing pro-growth economic policies through research, media engagement, and policy education. The organization regularly publishes economic analyses and policy reports aimed at informing policymakers and the public on issues affecting economic growth, innovation, and opportunity.
The report estimates that shortening approval timelines by one to six years would generate trillions of dollars in combined benefits for patients, innovators, and the broader economy. The authors contend that earlier access to treatments would improve health outcomes while allowing innovators to earn returns on successful products sooner, creating stronger incentives for future medical breakthroughs.
The report calls for expanding the use of external control trials and synthetic control arms, extending reviews beyond oncology products, increasing coordination between the FDA and the Centers for Medicare and Medicaid Services, utilizing artificial intelligence in the approval process, and strengthening existing “Right to Try” pathways for patients with serious illnesses.
Unleash Prosperity argues that faster approvals could also increase competition among manufacturers and ultimately help lower healthcare costs by bringing innovative treatments to market more efficiently.
The report comes amid broader debates in Washington over FDA modernization and efforts to improve patient access to emerging therapies. Policymakers, industry leaders, and patient advocates have increasingly called for reforms that reduce unnecessary regulatory burdens — while maintaining rigorous safety standards.
The report conclude that the United States remains the world’s leader in biomedical innovation — but risks slowing medical progress if regulatory barriers continue to delay the development and approval of new treatments. It argues that targeted reforms could preserve American leadership in medical innovation while delivering enormous benefits to patients and to the economy.
