The Biden administration unveiled a new framework outlining the factors federal agencies should consider in determining whether to use march-in rights.

The Biden administration on Thursday asserted its authority to seize the patents of certain costly medications in a new push to slash high drug prices and promote more pharmaceutical competition.

The administration unveiled a framework outlining the factors federal agencies should consider in deciding whether to use a controversial policy, known as march-in rights, to break the patents of drugs that were developed with federal funds but are not widely accessible to the public. For the first time, officials can now factor in a medication’s price — a change that could have big implications for drugmakers depending on how the government uses the powers.

“When drug companies won’t sell taxpayer-funded drugs at reasonable prices, we will be prepared to allow other companies to provide those drugs for less,” White House National Economic Advisor Lael Brainard said during a call with reporters Wednesday.

  • ArbitraryValue@sh.itjust.worksEnglish
    187·
    1 year ago

    taxpayers have spent tens of billions of dollars to fund hundreds of drugs

    That’s actually not that much per drug - approximately 100 million, when the average drug costs over a billion to bring to market. I think the drug companies may have a point when they say

    “The Administration is sending us back to a time when government research sat on a shelf, not benefitting anyone.”

    On the other hand

    The drugmakers charge more than $150,000 a year for Xtandi in the U.S. before insurance and other rebates, but charge a fraction of that price in other developed countries.

    I don’t think it’s fair for Americans to subsidize the healthcare of equally wealthy people in other countries. There’s a possible win-win situation in which the US government helps protect the interests of American drug companies abroad in exchange for lower domestic prices.

    This is an interesting article.