Pharma Industry on Alert as Biden Administration Explores Patent Seizure Powers

The White House is endorsing a contentious power that permits the government to reclaim patents for specific high-cost medications. 

On Thursday, the administration is reportedly set to introduce a blueprint enabling the National Institutes of Health to more extensively exercise "march-in rights" – a policy enabling the seizure of patents from drug manufacturers whose products rely on research funded by the federal government. 

This framework will delineate instances when the agency might invoke this authority and advocate considering a drug's price in making such determinations, Politico noted, citing the sources.

The Biden administration has concluded that it holds the power to confiscate patents for specific high-priced medications, potentially paving the way for a more forceful federal approach to reduce drug costs. 

According to the sources, the administration is not planning to advocate the widespread use of march-in rights and doesn't intend to take immediate action against any particular drugs. 

Instead, the Commerce Department is set to unveil a new framework on Thursday outlining criteria for federal agencies to consider when contemplating march-in actions against costly drugs or other products supported by federal assistance.

Factors like product pricing and accessibility to the public will be emphasized in this framework.

This move is expected to encounter fierce opposition from pharmaceutical companies, which argue that government patent seizure is unlawful and could discourage new drug development. 

The Biden administration's move to lower drug prices has prompted a flurry of legal challenges. Eight lawsuits are winding their way through nationwide courts against the administration.

Some companies, including AstraZeneca Plc AZN, Bristol Myers Squibb & Co BMY, and Boehringer Ingelheim, said that they are willing to participate in the initial round of Medicare drug price negotiations despite having previously sued to halt the process. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.