Current:Home > NewsThe 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:2025-04-27 17:48:42
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! (243)
Related
- IRS recovers $4.7 billion in back taxes and braces for cuts with Trump and GOP in power
- Convicted drug dealer whose sentence was commuted by Trump charged with domestic violence
- Convicted drug dealer whose sentence was commuted by Trump charged with domestic violence
- 4 bodies found inside the Bayesian, Mike Lynch family yacht, amid search
- San Francisco names street for Associated Press photographer who captured the iconic Iwo Jima photo
- Cristiano Ronaldo starts Youtube channel, gets record 1 million subscribers in 90 minutes
- Florida State, ACC complete court-ordered mediation as legal fight drags into football season
- Want an EV With 600 Miles of Range? It’s Coming
- Federal appeals court upholds $14.25 million fine against Exxon for pollution in Texas
- Flick-fil-a? Internet gives side eye to report that Chick-fil-A to start streaming platform
Ranking
- 'Squid Game' without subtitles? Duolingo, Netflix encourage fans to learn Korean
- Delaware State travel issues, explained: What to know about situation, game and more
- Jury sides with Pennsylvania teacher in suit against district over Jan. 6 rally
- Canada’s largest railroads have come to a full stop. Here’s what you need to know
- The White House is cracking down on overdraft fees
- Gun rights activists target new Massachusetts law with lawsuit and repeal effort
- Why Do Efforts To Impose Higher Taxes On Empty Homes In Honolulu Keep Stalling?
- California woman fed up with stolen mail sends Apple AirTag to herself to catch thief
Recommendation
Charges tied to China weigh on GM in Q4, but profit and revenue top expectations
Powdr to sell Vermont’s Killington, the largest mountain resort in New England
King Charles III Shares Rare Personal Update Amid Cancer Diagnosis
Powerball winning numbers for August 21: Jackpot rises to $34 million after winner
Justice Department, Louisville reach deal after probe prompted by Breonna Taylor killing
Sicily Yacht Company CEO Shares Endless Errors That May Have Led to Fatal Sinking Tragedy
Seattle Mariners fire manager Scott Servais in midst of midseason collapse, according to report
Floridians balk at DeSantis administration plan to build golf courses at state parks