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ck4829

(35,718 posts)
Thu Nov 3, 2022, 10:44 AM Nov 2022

Taxpayers foot the bill for medical research, but companies profit. We're paying for drugs twice

Pharmaceutical companies often reap the rewards of public spending. In fact, in the U.S, every new drug approved by the FDA between 2010 and 2019 has relied on grants from the NIH. Meanwhile, the companies sometimes turn around and charge the public exorbitant prices for the same drugs their tax dollars helped create.

Part of the problem is an outdated licensing system that allows private companies to buy exclusive rights to use publicly funded research, with few strings attached. Many of these issues stem from the way intellectual property, or IP, is licensed in the U.S. and some other wealthy countries. Making changes to the way we fund research and license drugs could help treat millions of people, particularly in developing nations.

Typically, when a scientist conducts research at an institution, the IP — meaning any novel innovations they produce, such as a new drug — belongs to the institution, rather than the scientist who did the work or the funder who paid for it. This arrangement is in large part thanks to the 1980 Bayh-Dole Act, which allows universities to patent inventions even when taxpayers funded the research. After the research is done, the institution can sell the IP to a corporation through a technology transfer agreement, and the company can bring it to market. After that point, as owners of the IP, companies have the freedom to set prices and make other key sales decisions.

This model has been championed as a way to encourage innovation, but those private companies are obliged to deliver the maximum return to shareholders rather than to ensure the greatest possible reduction in human suffering.

https://www.zmescience.com/science/taxpayers-foot-the-bill-for-medical-research-but-companies-profit-were-paying-for-drugs-twice-and-this-needs-to-change-now/

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Taxpayers foot the bill for medical research, but companies profit. We're paying for drugs twice (Original Post) ck4829 Nov 2022 OP
Which is why we have lots of pharmaceuticals Polly Hennessey Nov 2022 #1
Same as it ever was Bayard Nov 2022 #2
K&R zuul Nov 2022 #3
I dare ANY pharmaceutical company to show the records and receipits for any drug they claimed... Raster Nov 2022 #4
And it's about time they got called out on it. BComplex Nov 2022 #5

Polly Hennessey

(7,389 posts)
1. Which is why we have lots of pharmaceuticals
Thu Nov 3, 2022, 10:54 AM
Nov 2022

from which to choose with scary side effects (check out the TV ads) and precious few actual cures. A gold mine for Universities and Big Pharma.

Bayard

(24,105 posts)
2. Same as it ever was
Thu Nov 3, 2022, 10:57 AM
Nov 2022

We fund the research for new drugs. Pharma companies gobble up the drugs, and sell for huge profits, IN THE U.S. Other countries with socialized healthcare do not allow them to do this, so their drug costs are much lower.

I don't see it in the article, but they used to also be able to limit a generic version of the drug for a number of years.

Raster

(20,999 posts)
4. I dare ANY pharmaceutical company to show the records and receipits for any drug they claimed...
Thu Nov 3, 2022, 11:02 AM
Nov 2022

...they developed themselves without any US government assistance or involvement.

Cut to the chase: there isn't one. EVERY drug, especially the new, more expensive drugs, were developed with some government assistance. It's time to revisit the 1980 Bayh-Dole Act.

BComplex

(8,999 posts)
5. And it's about time they got called out on it.
Thu Nov 3, 2022, 11:14 AM
Nov 2022

There's so much wrong with how this country operates it's enough to make you sick.

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