President Joe Biden has directed the federal government to lift a ban on using “march-in rights” to lower prescription drug costs, according to Endpoint News.
As part of an executive order issued last Friday, Biden directed the government to pause a proposed rule from the Trump administration, which would have prevented the use of “march-in rights.”
The rule has never been used before but hypothetically it could help in lowering prescription drug costs, according to the news outlet.
Former President Donald Trump introduced the potential ban on the “march-in rights” earlier this year as he prepared to leave office.
However, Biden marked a reversal from just last month when the White House outlined its own regulatory plans and included the Trump rule, per the Endpoint News.
March-in rights were introduced under a 1980 federal law that aimed at promoting access to generic medications, allowing federal agencies to require private pharma companies to license patents to third parties.
“Pharma companies, their lobbyists, and nearly all Republicans have long held that march-in rights could squash biopharma innovation by controlling prices for certain drugs partially developed by government scientists, and make the industry less willing to work with government agencies like the NIH,” says Endpoint News.
However, it is still unclear exactly how Biden plans to implement drug pricing controls using march-in rights. It is also unclear how the Biden administration may do so legally, but the move reflects a broader shift in how the president approaches patent law.
“It’s not the first time march-in rights have been in the news since the Covid-19 pandemic got underway either,” states Endpoint News.
“Following the emergency use authorization for Gilead’s remdesivir last year, a group of 34 state attorneys general asked Trump’s HHS to use march-in, due to frustrations over the drug’s $3,250 price tag.” The article originally appeared on Endpoint News.
