
August 12, 2024
PhRMA Attacks FDA Licensing Affordability Proposal PhRMA, the brand drug manufacturer lobby, is attacking the National Institutes of Health’s (NIH) proposal to tie its licensing process to drug affordability in the United States once products hit the market. The proposal would tie U.S. prices to those in other developed countries. PhRMA argues that it would discourage collaboration by the private sector with NIH. “History demonstrates that placing unreasonable terms on licensing agreements diminishes willingness to engage in public-private partnership,” PhRMA said. But there is nothing wrong with the government tying affordability to any collaboration with the government. So much of what the drug industry eventually markets is tied to government innovation and funding. The proposal is not unlike march-in rights on patents, which is something to consider as well. It also ties to Medicare drug price negotiations. Let’s remember: the drug market is not a free market and needs reform.