The Biden administration is putting pharmaceutical companies on notice. Washington is 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.
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.
With health care costs in mind, the administration also sent a warning Thursday to private equity firms that have been buying up and gutting hospitals and physician practices around the country, then selling for a profit.
While only a minority of drugs on the market relied so heavily on taxpayer dollars, the threat of a government “march-in” on patents will make many pharmaceutical companies think twice, said Jing Luo, a professor of medicine at University of Pittsburgh.
The pharmaceutical lobby immediately pushed back on Biden’s announcement, arguing the White House’s interpretation of the law is inaccurate and their plan will stifle drug research and development.
“This would be yet another loss for American patients who rely on public-private sector collaboration to advance new treatments and cures,” said Megan Van Etten, a spokesperson for the Pharmaceutical Research and Manufacturers of America, or PhRMA.
The original article contains 757 words, the summary contains 218 words. Saved 71%. I’m a bot and I’m open source!
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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.
With health care costs in mind, the administration also sent a warning Thursday to private equity firms that have been buying up and gutting hospitals and physician practices around the country, then selling for a profit.
While only a minority of drugs on the market relied so heavily on taxpayer dollars, the threat of a government “march-in” on patents will make many pharmaceutical companies think twice, said Jing Luo, a professor of medicine at University of Pittsburgh.
The pharmaceutical lobby immediately pushed back on Biden’s announcement, arguing the White House’s interpretation of the law is inaccurate and their plan will stifle drug research and development.
“This would be yet another loss for American patients who rely on public-private sector collaboration to advance new treatments and cures,” said Megan Van Etten, a spokesperson for the Pharmaceutical Research and Manufacturers of America, or PhRMA.
The original article contains 757 words, the summary contains 218 words. Saved 71%. I’m a bot and I’m open source!