[Ip-health] KEI comments to the Senate Finance Committee Report on the Price of Sovalid

Jamie Love james.love at keionline.org
Sat Mar 5 07:04:38 PST 2016


* Provides an answer to: What is the appropriate price for a drug protected
by a patent or another exclusive right?

Source URL: http://keionline.org/node/2438

KEI comments to the Senate Finance Committee Report on the Price of Sovalid

5. March 2016 - 8:34

On March 4, 2016, KEI provided comments to the US Senate Committee on
Finance on a report prepared by staff for Senators Grassley and Wyden that
was issued by the committee on December 2015, titled The Price of Sovaldi
and Its Impact on the U.S. Health Care System.” Senators Grassley and Wyden
asked the public to comment on various issues raised in the report. The
comments we filed on March 4 including three major sections.

The first provided an answer to the following question: What is the
appropriate price for a drug protected by a patent or another exclusive
right? The comments on drug pricing elaborated on an earlier paper in Plos
[2], and presented a model for drug pricing that was designed to eliminate
price based formulates for products, expand access, and optimize R&D
objectives, including innovation for patients with rare diseases, within
budget constraints. This is a short and fairly accessible version of the
work in progress at KEI on a more detailed and empirically based model of
drug pricing, and fills in some of the gaps KEI sees as missing in the
current drug pricing discussions.  Novel for the US debate of drug pricing
are the use of rebates with outlays exceed budget targets.

The second topic as a short discussion of the KEI/UACT petition to the Army
and the NIH to use the government's royalty free or march-in rights on the
patents on the prostate cancer drug Xtandi.

The third issue mentioned was the 2015 proposal by Senator Sanders to
create a special system of government use of patented drugs for veterans
health care, where compensation to patent holders is contained by the
Department of Veterans Affairs budget for providing medicine, effectively
putting the monopoly rather than the veterans at risk when disputes rise
over the affordability of drugs.

We also tried to point the Senate Finance Committee in the direction of
de-linkage alternatives, but only by making brief references, including to
some of the work of the UN Secretary General's High Level Panel on Access
to Medicine.

We had about nine important deadlines this week, and if we had more time,
we would have made a more detailed submission to the Senate in response to
the important questions in the report.


[2]
http://blogs.plos.org/yoursay/2015/10/19/talking-drug-prices-pt-4-drug-pricing-is-out-of-control-what-should-be-done-by-james-love/
[3]
http://keionline.org/sites/default/files/KEI-comments-sovaldi-senate-report-4march2016.pdf

-- 
James Love.  Knowledge Ecology International
http://www.keionline.org/donate.html
KEI DC tel: +1.202.332.2670, US Mobile: +1.202.361.3040, Geneva Mobile:
+41.76.413.6584, twitter.com/jamie_love



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