"Instead of playing whack-a-mole, we need to break the monopolies themselves. Many companies have effectively outsourced their R&D to federally funded academic research. Under existing law, federal funding of R&D requires companies to offer the medicine on “reasonable terms”. If they do not, we can demand generic versions for federal programs like VA hospitals, and pay a royalty in return. Or, we can simply break the patent for everyone. In fact, we may not be limited to publicly funded pharmaceuticals. The federal government technically has the power to suspend a patent altogether. In 2003, the Bush administration threatened the maker of anthrax medicine Cipro with exactly that power. Moving forward, all new patents could include far-stricter cost protections that link prices to median income. Or, if you prefer a more flexible system, you could incentivize innovation with hefty cash prizes, but place the resulting drugs in the public domain."
Monday, August 29, 2016
Who is to blame for the EpiPen hike? Drug monopolies – not evil CEOs; Guardian, 8/29/16
Colin Holtz, Guardian; Who is to blame for the EpiPen hike? Drug monopolies – not evil CEOs: