The administration unveiled a framework outlining the factors federal agencies should consider in deciding whether to use a controversial policy, known as march-in rights, to break the patents of drugs that were developed with federal funds but are not widely accessible to the public. For the first time, officials can now factor in a medication’s price — a change that could have big implications for drugmakers depending on how the government uses the powers.
“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 said during a call with reporters Wednesday.
The administration’s announcement follows a nearly nine-month review of the federal government’s march-in rights, which aimed to update the framework for using the policy. It also comes as President Joe Biden makes lowering U.S. drug prices a key pillar of his health-care agenda and reelection platform for 2024.
[This applies where the federal government has subsidized the development of the drug in question, but that’s still a pretty wide scope. That kind of confiscatory policy probably won’t stand up in court, but the pharmas will have to spend a lot of money fighting it. Both the policy and the fight will leave less money and more risk for innovation in the future, which means we’ll get cheaper drugs but far fewer newer therapies. But it sure looks good as a campaign slogan for demagogues like Biden — and don’t kid yourselves, it will be effective too. — Ed]
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