[Ip-health] S.1810 proposal for National Academies study on delinkage

James Love james.love at keionline.org
Mon Jul 15 09:37:34 PDT 2019

S. 1801: Affordable Medications Act
Ms. Smith (for herself, Ms. Klobuchar, Mr. Blumenthal, Mr. Udall, Mr.
Brown, Ms. Warren, Mr. Sanders, Ms. Hassan, Mr. Whitehouse, Mr. Merkley,
Mr. Reed, Ms. Baldwin, Mr. Booker, Mr. Durbin, and Mrs. Gillibrand)
introduced the following bill; which was read twice and referred to the
Committee on Finance



(1)In general

The Director of NIH shall seek to enter into an agreement with the National
Academies of Sciences, Engineering, and Medicine to conduct a study to

(A)the use of innovation inducement reward funds and push financing
mechanisms as ways to stimulate investments in biomedical research and
development that de-links costs from product prices;

(B)models of different possible means of de-linking research and
development costs from drug prices, including the progressive replacement
of the monopoly on new products with a combination of expanded research
subsidies and new incentives from innovation inducement funds to stimulate
the development of drugs, including drugs to treat bacterial infections,
rare diseases, HIV/AIDS, and cancer;

(C)the size of market entry rewards, open source dividends and other
innovation inducement prizes that would be necessary to achieve innovation
objectives and the relative cost effectiveness of incentives delinked from
the prices of products and services in stimulating innovation, compared to
time-limited monopolies; and

(D)methods of progressively implementing policies that delink research and
development funding from prices of products and services, including to the
progressive reduction in the effective term of exclusive rights,
accompanied by a progressive introduction and expansion of market entry

(2)Authorization of appropriations

For the purpose of carrying out this subsection, there are authorized to be
appropriated, and there are appropriated, $3,000,000 for fiscal year 2020.
Such funds shall remain available until expended.

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