The Biden administration floated the possibility of seizing the patents for high-priced medications from pharmaceutical companies in a move to lower drug prices.
The White House put out a fact sheet Thursday that laid out the factors that federal agencies could use in order to execute a policy known as march-in rights, which would allow for the seizure of patents for drugs developed using taxpayer funds if the public isn’t able to “reasonably" access them.
What makes the Biden administration’s framework different is that reasonableness now includes a medication’s price. If a drug costs too much, the government could theoretically break its patent in the name of developing cheaper alternatives.
The framework will be open to public comment for 60 days.
March-in rights were created by the Bayh-Dole Act of 1980 but, to date, no agency has made use of the policy, according to reports.
The Biden administration will “make it clear that when drug companies won’t sell taxpayer-funded drugs at reasonable prices, we will be prepared to allow other companies to provide those drugs for less,” White House national economic advisor Lael Brainard told reporters.
The Pharmaceutical Research and Manufacturers of America, a lobbying group representing drugmakers including Pfizer Inc (NYSE:PFE), Johnson & Johnson (NYSE:JNJ) and Eli Lilly and Co (NYSE:LLY), pushed back in a statement.
“This would be yet another loss for American patients who rely on public-private sector collaboration to advance new treatments and cures,” a spokesperson for the group said. “The Administration is sending us back to a time when government research sat on a shelf, not benefitting anyone.”
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