In an opinion piece for StatNews, Peter Arno et al. explains how the Biden Administration could save the lives of thousands of people with prostate cancer. Specifically, they show how the administration could reduce the cost of the enormously high-priced drug Astella drug, Xtandi, by 66-80 percent using march-in rights. Naturally, at one-third to one-fifth its current cost of $156,000, many more Americans would be able to take advantage of the treatment than can do so today.
Reducing the cost of Astella’s drug by two-thirds, let alone four-fifths, would mean that cost would not be a barrier to treatment for many more people with prostate cancer. And, the price reduction would be in keeping with what people in other wealthy countries pay for the drug. Why should Americans pay so much more for this drug or any drug for that matter?
Americans already have paid for the research and development of Xtandi. It was discovered at UCLA with funding from the National Institutes of Health and the US Army. To use march-in rights, all Secretary of HHS, Xavier Becerra, would have to do is find that it is unreasonable to ask Americans to pay three to five times more than people in other wealthy countries for a drug that was developed with US taxpayer funding.
Authority to reduce drug prices through march-in rights is well-established. There is no need for additional legislation. But Pharma has done a great job of keeping executive agencies from using this authority.
To date, the NIH has rejected a petition for it to use march-in rights to reduce the price of Xtandi. The NIH position in 2016 was that it was not unreasonable for Xtandi to cost $156,000 in the US. In fact, “any price” would be fine.
A new petition was filed in 2019. Two years later, HHS sent the new request to the NIH to consider. The Bayh-Dole Act of 1980 gives the federal government the right to address unreasonably high drug prices. It can allow third parties to manufacture a generic version of these drugs at lower cost.
Medicare is covering Xtandi now at an unreasonably high price, spending more than $1 billion on it each year, at taxpayer expense. But, the price it is paying is obscene, driving up Medicare premiums and wasting taxpayer dollars. And, high copays and coinsurance for the drug still keep tens of thousands of people from taking advantage of it.
What’s remarkable is that at the same time that the Biden administration says it supports legislation to lower drug prices that Congress can’t manage to pass, it refuses to take advantage of a generic version of Xtandi that Canada is willing to provide the US at 97 percent lower cost than what Medicare currently pays. The administration also claims it supports march-in rights. Actions speak louder than words.
Here’s more from Just Care: