Column: The government could cut the price of this prostate cancer drug by as much as 80%. Why hasn't it acted?
The key factor in the debate is
The government has never exercised its march-in rights, though it has occasionally threatened to do so to extract concessions from manufacturers. HHS, the NIH and industry lobbyists have maintained that march-in rights were not designed to be used to bring prices down, but that’s disputable. Rather, they said, the march-in rights were aimed at cases in which a company hadn’t commercialized the product at all.
“In general, it’s hard to imagine that price is not a ‘reasonable term,’” says Aaron Kesselheim of Harvard Medical School, the coauthor of“You could imagine that there could be a price at which a product was unobtainable,” Kesselheim told me. “Certainly the high prices of drugs these days are causing substantial strains for payers leading to high out-of-pocket costs. That’s relevant to the availability of a drug.
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