Current:Home > InvestThe White House is threatening the patents of high-priced drugs developed with taxpayer dollars -TrueNorth Capital Hub
The White House is threatening the patents of high-priced drugs developed with taxpayer dollars
View
Date:2025-04-22 22:19:11
WASHINGTON (AP) — The Biden administration is putting pharmaceutical companies on notice, warning them that if the price of certain drugs is too high, the government might cancel their patent protection and allow rivals to make their own versions.
Under a plan announced Thursday, the government would consider overriding the patent for high-priced drugs that have been developed with the help of taxpayer money and letting competitors make them in hopes of driving down the cost.
In a 15-second video released to YouTube on Wednesday night, President Joe Biden promised the move would lower prices.
“Today, we’re taking a very important step toward ending price gouging so you don’t have to pay more for the medicine you need,” he said.
The administration did not immediately release details about how the process will work and how it will deem a drug costly enough to act. White House officials would not name drugs that might potentially be targeted.
There will be a 60-day public comment period. If the plan is enacted, drugmakers are almost certain to challenge it in court.
It’s the latest health policy pitch from a White House gearing up to make its efforts to tackle drug prices a central theme in next year’s reelection campaign. Biden frequently talks about the $35 cap on insulin for Medicare enrollees that went into effect this year, as well as a plan for government officials to negotiate some drug prices paid by Medicare for the first time in history.
The federal government, however, has never taken such a move against patents, a step called “march-in rights.” But some Democratic lawmakers, including Sens. Elizabeth Warren of Massachusetts and Amy Klobuchar of Minnesota, has in recent years lobbied the Health and Human Services agency to do so with certain drugs.
The conditions for how those “march-in rights” would be used have long been debated. Pharmaceutical companies have pushed back on the idea that prices alone are enough for Washington to act against a drug’s patent. The process proposed by the administration would clarify that the drug’s patent could be in jeopardy if its price is out of reach for Americans, White House officials said.
“For the first time, ever, the high price of that taxpayer-funded drug is a factor in determining that the drug is not accessible to the public on reasonable terms,” said Biden domestic policy adviser Neera Tanden.
The plan could threaten future drugs, according to the pharmaceutical lobbying firm Pharmaceutical Research and Manufacturers of America, or PhRMA.
“This would be yet another loss for American patients who rely on public-private sector collaboration to advance new treatments and cures,” PhRMA spokesperson Megan Van Etten said.
Pharmaceutical companies have long relied on government research to develop new drugs. The most recent major breakthrough was the development of COVID-19 vaccines. U.S. taxpayers invested billions of dollars in the effort and were able, until recently, to access treatments and preventions for the virus without paying out-of-pocket for them.
When the public invests heavily in a private company’s drug, it’s fair to question whether they should have to pay high prices for it, said William Pierce, a former HHS official during President George W. Bush’s administration.
“The question becomes – what reward should there be for the taxpayers who help fund this product?” Pierce said.
veryGood! (7214)
Related
- US appeals court rejects Nasdaq’s diversity rules for company boards
- Inside Clean Energy: A Steel Giant Joins a Growing List of Companies Aiming for Net-Zero by 2050
- United Airlines will no longer charge families extra to sit together on flights
- ESPYS 2023: See the Complete List of Nominees
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- Conservative Justices Express Some Support for Limiting Biden’s Ability to Curtail Greenhouse Gas Emissions
- With layoffs, NPR becomes latest media outlet to cut jobs
- Nearly 30 women are suing Olaplex, alleging products caused hair loss
- North Carolina trustees approve Bill Belichick’s deal ahead of introductory news conference
- Microsoft vs. Google: Whose AI is better?
Ranking
- Paula Abdul settles lawsuit with former 'So You Think You Can Dance' co
- Transcript: Mesa, Arizona Mayor John Giles on Face the Nation, July 16, 2023
- Missing Titanic Submersible Passes Oxygen Deadline Amid Massive Search
- One of the Country’s 10 Largest Coal Plants Just Got a Retirement Date. What About the Rest?
- Rylee Arnold Shares a Long
- DNA from pizza crust linked Gilgo Beach murders suspect to victim, court documents say
- Inside Clean Energy: Illinois Faces (Another) Nuclear Power Standoff
- Hollywood's Black List (Classic)
Recommendation
Tree trimmer dead after getting caught in wood chipper at Florida town hall
Mark Zuckerberg Accepts Elon Musk’s Challenge to a Cage Fight
Instagram and Facebook launch new paid verification service, Meta Verified
Health concerns grow in East Palestine, Ohio, after train derailment
Appeals court scraps Nasdaq boardroom diversity rules in latest DEI setback
Russia is Turning Ever Given’s Plight into a Marketing Tool for Arctic Shipping. But It May Be a Hard Sell
The U.S. could run out of cash to pay its bills between July and September
Inside Clean Energy: In South Carolina, a Happy Compromise on Net Metering