Current:Home > ContactThe White House is threatening the patents of high-priced drugs developed with taxpayer dollars -GrowthInsight
The White House is threatening the patents of high-priced drugs developed with taxpayer dollars
View
Date:2025-04-13 07:09:41
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! (935)
Related
- Jamie Foxx reps say actor was hit in face by a glass at birthday dinner, needed stitches
- Tackling climate change and alleviating hunger: States recycle and donate food headed to landfills
- 5 people dead in a Thanksgiving van crash on a south Georgia highway
- Paris Hilton shares why she is thankful on Thanksgiving: a baby girl
- Opinion: Gianni Infantino, FIFA sell souls and 2034 World Cup for Saudi Arabia's billions
- NYC Mayor Eric Adams accused of sexual assault 30 years ago in court filing
- Rapper Young Thug’s long-delayed racketeering trial begins soon. Here’s what to know about the case
- The New York Times Cooking: A recipe for success
- 'Malcolm in the Middle’ to return with new episodes featuring Frankie Muniz
- No. 7 Texas overwhelms Texas Tech 57-7 to reach Big 12 championship game
Ranking
- Trump issues order to ban transgender troops from serving openly in the military
- Jimmy Carter's last moments with Rosalynn Carter, his partner of almost eight decades
- Gwyneth Paltrow talks menopause and perimenopause: 'It's nothing to be hidden'
- AP Week in Pictures: North America
- Israel lets Palestinians go back to northern Gaza for first time in over a year as cease
- Dolly Parton Dazzles in a Dallas Cowboys Cheerleader Outfit While Performing Thanksgiving Halftime Show
- Black Friday and Beyond
- Ringo Starr takes fans on a colorful tour of his past in book ‘Beats & Threads’
Recommendation
Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
Commanders' Ron Rivera on future after blowout loss to Cowboys: 'I'm not worried about it'
Paris Hilton and Carter Reum Welcome Baby No. 2: Look Back at Their Fairytale Romance
Ukraine aims a major drone attack at Crimea as Russia tries to capture a destroyed eastern city
Sam Taylor
Paper mill strike ends in rural Maine after more than a month
Wild's Marc-Andre Fleury wears Native American Heritage mask after being told he couldn't
Police identify North Carolina man fatally shot by officer during Thanksgiving traffic stop