Current:Home > ContactThe White House is threatening the patents of high-priced drugs developed with taxpayer dollars -Wealth Axis Pro
The White House is threatening the patents of high-priced drugs developed with taxpayer dollars
View
Date:2025-04-16 07:22:24
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! (41)
Related
- Toyota to invest $922 million to build a new paint facility at its Kentucky complex
- Kansas is poised to boost legislators’ pay by $28,000 in 2025, nearly doubling it
- Abreu, Alvarez and Altuve help Astros pull even in ALCS with 10-3 win over Rangers in Game 4
- Hundreds feared dead in Gaza hospital blast as Israeli, Palestinian officials trade accusations
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- More Americans make it back home, as flights remain limited from Israel
- IAEA team gathers marine samples near Fukushima as treated radioactive water is released into sea
- John Stamos opens up about 'shattering' divorce from Rebecca Romijn, childhood sexual assault
- Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
- US Navy warship in Red Sea intercepts three missiles heading north out of Yemen
Ranking
- South Korean president's party divided over defiant martial law speech
- Embrace the Chaos: Diamondbacks vow to be more aggressive in NLCS Game 3 vs. Phillies
- Why Gwyneth Paltrow Really Decided to Put Acting on the Back Burner
- Crypto firms Gemini, DCG sued by New York for allegedly bilking investors of $1.1 billion
- Where will Elmo go? HBO moves away from 'Sesame Street'
- Earthquake country residents set to ‘drop, cover and hold on’ in annual ShakeOut quake drill
- Mortgage rates climb to 8% for first time since 2000
- Lupita Nyong’o and Boyfriend Selema Masekela Break Up After One Year of Dating
Recommendation
New Mexico governor seeks funding to recycle fracking water, expand preschool, treat mental health
New York judge fired for pointing gun at a Black man in court
Powerball winning numbers from Oct. 18 drawing: Jackpot at $70 million
Mortgage rates touch 8% for the first time since August 2000
The Super Bowl could end in a 'three
Scorsese centers men and their violence once again in 'Killers of the Flower Moon'
Man accused of bringing guns to Wisconsin Capitol now free on signature bond, can’t possess weapons
Embrace the Chaos: Diamondbacks vow to be more aggressive in NLCS Game 3 vs. Phillies