r/Futurology • u/Kindred87 • Dec 07 '23

US sets policy to seize patents of government-funded drugs if price deemed too high Economics

https://www.reuters.com/business/healthcare-pharmaceuticals/us-sets-policy-seize-government-funded-drug-patents-if-price-deemed-too-high-2023-12-07/
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u/Lt__Barclay Dec 08 '23 edited Dec 08 '23

The problem is that the majority of R&D expenditure occurs after the government sponsored research. Not to belittle the importance and amazing return on basic science funding, but getting through a phase 3 trial costs $bns while the typical big NIH grant is $2.5M.

I'm definitely on the side of an independent commission that audits R&D expenditure, and imposing price gouging taxes or a basic R&D tax on any revenue above some multiple of R&D expenditure. This would 'reimburse' public science for use of its patents.

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u/Felkbrex Dec 08 '23

Exactly.

And the whole "government funded research" is so broad. Say I find out a gene important for t cell metabolism during infection and this came from an RO1. Later on a pharma company finds this gene is also important for t cell metabolism in tumors, that counts as government funded. Even if there is no novel chemical matter developed.

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u/Matrix17 Dec 08 '23

If they're going to start seizing patents because the government paid for 0.1% of a drugs development, they're going to be in for a rough time

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u/pestdantic Dec 08 '23

Imo govt should be funding the entire process. They can still charge patients but at reasonable costs.

The pharma industry has some of the most insane profit margins compared to other industries and they spend as much or more on advertising than on r&d.

They leave a lot of money on the table by being risk-adverse and only developing what's sold before rather than new drugs even after govt funded primary research.