Current:Home > ContactThe White House is threatening the patents of high-priced drugs developed with taxpayer dollars -Clarity Finance Guides
The White House is threatening the patents of high-priced drugs developed with taxpayer dollars
View
Date:2025-04-18 17:46:44
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! (9)
Related
- Civic engagement nonprofits say democracy needs support in between big elections. Do funders agree?
- Kate Spade 24-Hour Flash Deal: This $360 Backpack Is on Sale for $89 and It Comes in 8 Colors
- Iran frees 3 Europeans in prisoner swap as detained American's lawyer denies rumors of imminent release
- Afghan sisters who defied family and the Taliban to sing lost everything and now battle depression
- Don't let hackers fool you with a 'scam
- 90 Day Fiancé Sneak Peek: Jen Says She's Disgusted After Rishi Sends Shirtless Pic to a Catfish
- Priyanka Chopra Recalls Being in a Tumultuous Relationship When Nick Jonas Slid Into Her DMs in 2016
- Royal Family Mourns Unexpected Death of Comedian Paul O'Grady
- Nearly half of US teens are online ‘constantly,’ Pew report finds
- Pope Francis Hospitalized With Respiratory Infection
Ranking
- The FBI should have done more to collect intelligence before the Capitol riot, watchdog finds
- Kourtney Kardashian Responds to Comments About Her “Nasty” Bathroom Dinner
- Ulta 24-Hour Flash Sale: Take 50% Off First Aid Beauty, Tula, Morphe, Bobbi Brown, and It Cosmetics
- 10 Picture-Perfect Dresses & Jumpsuits for Your Graduation Photoshoot
- What to watch: O Jolie night
- Killer whales are ramming into boats and damaging them. The reason remains a mystery.
- Super Typhoon Mawar slams Guam as Category 4 storm: The winds are howling, things are breaking
- Ukraine says Russia blew up major dam from inside, endangering thousands of people and a nuclear plant
Recommendation
EU countries double down on a halt to Syrian asylum claims but will not yet send people back
Tom Cruise and Nicole Kidman's Daughter Bella Shows Off Hair Transformation in Rare Selfie
Most-Shopped Celeb-Recommended Items This Month: Drew Barrymore, Sydney Sweeney, Lala Kent, and More
The Bachelor Finale: Find Out If Zach Shallcross Got Engaged
In ‘Nickel Boys,’ striving for a new way to see
Snorkeler survives crocodile attack by prying its jaws off of his head
Charli D’Amelio and Landon Barker Share Sweet Glimpse Inside Their Relationship
3 Israeli soldiers killed in gun battle at Egyptian border, military officials say