Posted on 12/07/2023 5:31:55 AM PST by Red Badger
The decision could give the president another tool to use in his effort to lower drug prices.
The Biden administration has determined that it has the authority to seize the patents of certain high-priced medicines, a move that could open the door to a more aggressive federal campaign to slash drug prices.
The determination, which was described by three people familiar with the matter, represents the culmination of a nearly nine-month review of the government’s so-called march-in rights. Progressives have long insisted that those rights empower the administration to break the patents of pricey drugs that were developed with public funds, in an effort to create more competition and lower prices.
The administration will not endorse the widespread use of march-in rights, and is not expected to take action against any individual medicines, said the people familiar with the matter, who were granted anonymity to discuss internal decision making.
Instead, the Commerce Department on Thursday plans to issue a new framework spelling out factors that federal agencies should weigh in determining whether to take march-in action against expensive drugs or other individual products that were created with federal help. The price and availability of that product to the public are among the factors the department will recommend that agencies consider.
The department will seek public feedback on the framework, which is likely to face sharp opposition from pharmaceutical companies that argue it’s illegal for the government to seize its patents and would disincentivize the development of new drugs.
The White House declined to comment.
The administration’s decision comes as Biden officials seek fresh opportunities to lower drug prices and boost competition within the industry, and amid renewed attention on President Joe Biden’s health agenda.
The White House has scrambled to highlight Biden’s health accomplishments in recent days, after former President Donald Trump suggested he would repeal and replace the Affordable Care Act if elected in 2024.
Biden officials now plan to make a fresh push to put health care at the center of Biden’s reelection platform, rolling out proposals in the coming days that would expand on Democrats’ passage of laws capping insulin prices for Medicare recipients and allowing Medicare to negotiate the price of certain drugs. Biden has also portrayed himself as a chief antagonist of the pharmaceutical industry, casting his drug price policies as central to his administration’s battle against “Big Pharma.”
The Commerce Department and Department of Health and Human Services were already expected to issue their determination on the government’s march-in authority in the coming weeks, the people familiar with the matter said. But the announcement was accelerated in the wake of Trump’s comments, and officials are expected to cite it as evidence that Biden continues to search for new ways to lower prices.
The departments launched their review in March, after the administration rejected petitions to use march-in authorities to seize the patent for a prostate cancer drug called Xtandi.
The Xtandi decision prompted criticism from prominent progressives at the time, including Sen. Bernie Sanders (I-Vt.), who later stalled Biden’s nominee for the National Institutes of Health partly over the administration’s reluctance to use its march-in rights.
All good communist dictators eventually seize the assets of bourgeoisie businesses.
“From each according to his ability, to each according to his needs.”
Big pharma is going to sue like hell.
Actually, if you were a company on cutting edge technology, this would be the doorway to quickly exit the US...to find a country to protect your inventions. I would imagine several US companies will park their developmental labs in non-US locations. I doubt if Biden or his handlers have thought much about this angle to the issue.
Yep, the the standard DC extortion system. Make the proper donations and do what we say or we will take your stuff.
"Nice patent you got there, be a shame if something happened to it."
It's also deployed against big tech.
Who even knew the government had “march-in rights?” Turns out they were codified by Congress in 1980, but have never been successfully used. The bill was sponsored by Birch Bayh and Bob Dole, one of the original rinos.
Under the law as near as I can decipher, the government has the right under specified circumstances to require a patent holder to develop the patent, if they haven’t already; or to require licensing of the product to qualified applicants if it is necessary to maintain public safety, availability, etc. And if there are no applicants for licensing, the government can license itself. It will read like good politics to pander to the takers.
All very iffy, of course, but just your basic fascism at work.
Democracy at work. 🙄
But at least we don’t have that would-be dictator, Ol’ Trump, seizing private property.
Here’s a clue: Forget about attracting investment into pharma R&D. This’ll foster a trend to let ABA (Anywhere But America) invent new drugs. Since the young leftists are immortal this doesn’t bother them.
I know a guy whose family owned a business in Venezuela.
The government decided they had a right to seize their business “at their pleasure.”
The family left for the United States and the Venezuelan government ran their former business into the ground.
And so, with the Bureau of Economic Planning and National Resources blackmailing him over his affair with Dagny Taggart, Hank signs the rights to Rearden Metal over to the government which promptly labels it Miracle Metal, all a byproduct of Directive 10-289.
Heh, that so sounds like Milton Freidman...:)
An Economically geniused giant with the wizened countenance and manner of a of a kind-hearted comedic grandfather...
Big Pharma might get some sympathy from me...
First check out “Evergreening”.
Point Three. All patents and copyrights, pertaining to any devices, inventions, formulas, processes and works of any nature whatsoever, shall be turned over to the nation as a patriotic emergency gift by means of Gift Certificates to be signed voluntarily by the owners of all such patents and copyrights. The Unification Board shall then license the use of such patents and copyrights to all applicants, equally and without discrimination, for the purpose of eliminating monopolistic practices, discarding obsolete products and making the best available to the whole nation. No trademarks, brand names or copyrighted titles shall be used.
In practice this doesn't protect against monopoly, it guarantees it. Here the manufacturers favored by the government will be the only ones awarded the right to produce the products involved. And only the people favored by the government will be allowed to obtain them. This is classic fascism.
Yet the dems claim Trump would be a dictator!
And a Hitler....................
Yup. Otherwise known as crony “capitalism”.
Ha ha ha. Stupid chumps did their bidding and are now reaping the rewards of being useful idiots: "But we went along with the scamdemic and helped you get rid of Trump!"
Not if Federal $$ is what developed it. Let these companies spend their own money and they wouldn’t have this issue. FedGov shouldn’t even be giving them money anyway...
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