Pharma Industry on Alert as Biden Administration Explores Patent Seizure Powers
Portfolio Pulse from Vandana Singh
The Biden administration is considering using 'march-in rights' to seize patents for high-cost medications developed with federal funding. A new framework by the Commerce Department will outline criteria for such actions, focusing on drug pricing and public accessibility. Pharmaceutical companies oppose this, claiming it's illegal and could hinder new drug development. AstraZeneca, Bristol Myers Squibb, and Boehringer Ingelheim, despite lawsuits against the administration's drug pricing policies, are open to Medicare price negotiations.

December 07, 2023 | 12:33 pm
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NEGATIVE IMPACT
AstraZeneca Plc, despite being open to Medicare price negotiations, may face challenges due to the Biden administration's potential use of 'march-in rights' to control drug costs.
The potential use of 'march-in rights' could lead to lower drug prices, impacting AstraZeneca's revenue from high-cost medications. The company's willingness to negotiate Medicare prices shows adaptability, but the threat of patent seizure remains a concern.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
Bristol Myers Squibb & Co may be impacted by the Biden administration's exploration of patent seizures, despite participating in Medicare drug price negotiations.
The administration's consideration of 'march-in rights' could affect Bristol Myers Squibb's profits from federally funded drug patents. Their involvement in Medicare negotiations indicates a proactive approach, but the regulatory risk persists.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70