US Senator Warren insists on strengthening the policy of seizing pharmaceutical patents

Author: Patrick Wingrove

(Reuters) – U.S. Senator Elizabeth Warren and another Democratic lawmaker said on Thursday they had sent a letter urging the Commerce Department to finalize policy on when the government can seize patents on drugs and other products whose research it has funded.

The Biden administration announced in December that it was establishing a new policy that would allow it to seize patents on technologies developed with government support if it determines their prices are too high.

The government, which has given the public until February to comment on the proposal, is expected to decide within a few days whether to finalize the change to the so-called almost to the point of marching, according to a source close to the matter.

The never-before-used March rights allow the government to additionally license products developed using federal funds to third parties if the original patent holder fails to make them available to the public on reasonable terms.

Warren and U.S. Representative Lloyd Doggett stated that an analysis of public comments submitted to the proposal showed that 85% were in favor of it.

“As we work to finalize the guidance, we urge you to take into account the overwhelming support for this framework, including the thousands of comments calling for the march authority to be used to lower prescription drug prices,” they wrote.

Earlier this month, Warren and Sen. Bernie Sanders sent a letter to the U.S. Chamber of Commerce criticizing its efforts to derail the policy.

In March, the Chamber said it was launching a seven-figure initiative to oppose this proposal and other policies it considers a threat to U.S. innovation.

The pharmaceutical industry’s leading lobbying group, PhRMA, also disagreed with the policy in a public comment, saying it makes price a factor that increases risk and uncertainty in the already risky enterprise of drug development.

According to the draft, the proposed policy applies to all technologies at every stage of development. However, those who have called for the right to march in the past have typically done so for drugs that received early-stage government funding.

Under the new policy, the government will consider factors such as whether only a small group of patients can afford the drug and whether drugmakers are taking advantage of health and safety concerns by raising prices.

(Reporting by Patrick Wingrove; Editing by Bill Berkrot)