David Dayen writes for The American Prospect on the question of whether the Biden administration will to do what it can to reduce prescription drug prices. It has the power to reduce the price of Xtandi–a prostate cancer drug–from a list price of $188,900 a year to less than $38,000 a year if it wants, which would be inline with what other countries pay. The world is flat; it’s time for the Biden administration to do right by Americans.
Today patients with prescription drug coverage often spend $10,000 or more a year out-of-pocket for Xtandi to treat their prostate cancer. Or, they are forced to forgo taking the drug. Many prostate cancer patients with prescription drug coverage cannot afford the copay, so cannot benefit from the drug.
We should know very shortly whether the Biden administration will use march-in rights under Bayh-Dole to bring down the cost of Xtandi on the ground that the price of the drug is unreasonable. Xtandi is available in other countries for 20-33 percent of what we pay for the drug in the US. The NIH is scheduled to make a determination any day.
To date, no administration has ever used its march-in rights to break a drug patent. If the Biden administration exercises march-in rights, two companies are prepared to distribute a generic version of Xtandi. The Canadian company says it would charge $3 for a pill about one-fiftieth of its typical price.
In 2016, the NIH declined a request to use march-in rights on Xtandi. Its manufacturer responded by raising the price even higher. To date the drug has generated $20 billion in revenue.
It’s not clear why NIH will take a different position this time round. Xtandi was developed with government funding and some senior staff at NIH profit from the drug every year. They receive royalties of as much as $!50,000. A decision to allow march-in rights could reduce their income.
Although Bayh and Dole have said that their legislation was not intended to address unreasonably high drug prices. But, they did so when they were paid to work for the pharmaceutical industry.
Why shouldn’t Americans pay the average of what other wealthy countries pay for their drugs? In fact, Pfizer agreed to charge the government no more than the lowest price it charges g7 countries for its Covid treatment, Paxlovid.
Should the NIH grant march-in rights for Xtandi, Astellas, the drug manufacturer, could appeal. But, the government would automatically have royalty-free rights for people with Medicare, Medicaid and the VA. Older adults, people with disabilities, people with low incomes and veterans would benefit right away.
Here’s more from Just Care:
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