House passes 'reasonable pricing'

The U.S. House of Representatives late Tuesday passed legislation requiring drug companies to charge "reasonable" prices for products developed in collaboration with the NIH. The bill prohibits NIH from granting an exclusive or partially exclusive license, unless it requires that the resulting product is provided to the public "on reasonable terms." The legislation, sponsored by Rep. Bernard Sanders (I-VT), passed by a vote of 313 to 109 as an amendment to the Departments of Labor, Health and Human Services, and Education appropriations bill.

NIH jettisoned reasonable pricing policies in 1995 (see BioCentury Extra, April 12, 1995). At that time, NIH Director Harold Varmus had said that "an extensive review of this matter over the past year indicates that the pricing clause has driven industry away from potentially beneficial scientific collaborations with PHS (Public Health Service) scientists without providing an offsetting benefit to the public. Eliminating the clause will promote research that can enhance the health of the American people." ...