Leveraging Bayh-Dole Act March-In Rights to Reduce US Drug Prices

By João L. Carapinha

November 4, 2024

The article titled “Using Bayh-Dole Act March-In Rights to Lower US Drug Prices” published in the JAMA Health Forum discusses how the Bayh-Dole Act’s march-in rights can potentially be utilized to lower drug prices in the United States. By examining this framework, the article highlights a critical strategy that could help tackle the pressing issue of high drug costs affecting millions of Americans.

Bayh-Dole Act Overview

The Bayh-Dole Act of 1980 allows universities and other research institutions to retain the intellectual property rights to inventions developed with federal funding. This act aims to promote the commercialization of these inventions.

March-In Rights

The Bayh-Dole Act provides a provision known as “march-in rights,” which empowers the federal government to intervene. It does so by granting licenses to other entities if the patent holder fails to achieve “practical application” of the invention. This mechanism is particularly relevant when an invention is not being made available to the public on reasonable terms.

Application to Drug Prices

The article argues that march-in rights could be pivotal in lowering drug prices by addressing patents held by pharmaceutical companies that lead to exorbitant medication costs. If a particular drug is not accessible at a reasonable price, the government might invoke march-in rights to permit other companies to produce the drug. This would increase competition and significantly lower costs for consumers.

Legal and Policy Considerations

The authors discuss the various legal and policy implications surrounding the invocation of march-in rights. Key considerations include determining what constitutes “reasonable terms” and anticipated resistance from pharmaceutical companies. The article also reviews previous attempts to utilize march-in rights for drug pricing and the factors contributing to their lack of success.

Public Health Impact

The article emphasizes the potential public health benefits that come from making essential medications more affordable. By effectively leveraging march-in rights, the government could help ensure that life-saving drugs are accessible to a wider population, especially to those who struggle to afford them at current price levels.

Conclusion

The authors assert that using Bayh-Dole Act march-in rights is a viable strategy to combat high drug prices in the US. But they recognize the complexities and challenges involved in implementing this approach. It includes potential legal disputes and the need for clearly defined policy guidelines.

Overall, this article provides a comprehensive analysis of existing legal frameworks. The Bayh-Dole Act’s march-in rights will promote public health by making essential medications more accessible and affordable.

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