https://www.salon.com/2020/07/05/contrac...s_partner/
INTRO: Government contracts obtained by consumer advocacy group Knowledge Ecology International show that the Trump administration is giving pharmaceutical companies a green light to charge exorbitant prices for potential coronavirus treatments developed with taxpayer money by refusing to exercise federal authority to constrain costs.
Through the Freedom of Information Act, Knowledge Ecology International (KEI) last week got hold of a number of heavily redacted agreements between the Trump administration and major pharmaceutical companies like Johnson & Johnson, Regeneron, and Genentech.
Five of the seven documents reviewed by KEI are classified as "other transaction agreements," which allow federal agencies to loosen regulations designed to protect the public in order to help companies streamline the product development process.
In the case of four contracts for potential Covid-19 treatments or vaccines with Johnson & Johnson, Genentech, Regeneron, and Roche issued by the Biomedical Advanced Research and Development Authority (BARDA) and the Pentagon, the Trump administration omitted a standard condition requiring that products developed with taxpayer money be made available to the public "on reasonable terms."
"This means that the government has limited its ability to intervene if the pharmaceutical companies (which are party to the agreements and are receiving hundreds of millions of dollars to conduct the research) charge unreasonable prices for the resulting Covid-19 vaccines or treatments," KEI noted in a press release... (MORE)
- - -
EDIT: Arguably this is "watchdog" concern about or drama over the maintenance of a deterrent threat that has never actually been used. Mutable agreements were desired by HHS because it speeded up the process with Pharma for treating the pandemic, supposedly equipped with alternative safeguards.
Trump administration makes it easier for drugmakers to profit from publicly funded coronavirus drugs, advocates say: The government has never exercised the authority, called “march-in rights,” and the limits of the power are disputed. But consumer advocates said they believe the mere threat can serve as a check on drug prices, especially in an emergency like the current pandemic.
[...] “Agreements under other transaction authority save time and tax dollars by providing flexibility that is not available in typical federal contracts to purchase material,” the department said. HHS “has been able to enter into partnerships with companies to access entire portfolios of potential products and technologies in the company’s development pipeline. If the science on one potential product doesn’t work out or a new threat emerges, the work can shift quickly to develop a different product candidate in the portfolio to meet the nation’s health security needs.” The statement continued, “HHS always seeks best value to the taxpayer, and when purchasing products that are manufactured with companies’ financial resources, one of the considerations in the price is any federal funding that was provided to develop the product.”
INTRO: Government contracts obtained by consumer advocacy group Knowledge Ecology International show that the Trump administration is giving pharmaceutical companies a green light to charge exorbitant prices for potential coronavirus treatments developed with taxpayer money by refusing to exercise federal authority to constrain costs.
Through the Freedom of Information Act, Knowledge Ecology International (KEI) last week got hold of a number of heavily redacted agreements between the Trump administration and major pharmaceutical companies like Johnson & Johnson, Regeneron, and Genentech.
Five of the seven documents reviewed by KEI are classified as "other transaction agreements," which allow federal agencies to loosen regulations designed to protect the public in order to help companies streamline the product development process.
In the case of four contracts for potential Covid-19 treatments or vaccines with Johnson & Johnson, Genentech, Regeneron, and Roche issued by the Biomedical Advanced Research and Development Authority (BARDA) and the Pentagon, the Trump administration omitted a standard condition requiring that products developed with taxpayer money be made available to the public "on reasonable terms."
"This means that the government has limited its ability to intervene if the pharmaceutical companies (which are party to the agreements and are receiving hundreds of millions of dollars to conduct the research) charge unreasonable prices for the resulting Covid-19 vaccines or treatments," KEI noted in a press release... (MORE)
- - -
EDIT: Arguably this is "watchdog" concern about or drama over the maintenance of a deterrent threat that has never actually been used. Mutable agreements were desired by HHS because it speeded up the process with Pharma for treating the pandemic, supposedly equipped with alternative safeguards.
Trump administration makes it easier for drugmakers to profit from publicly funded coronavirus drugs, advocates say: The government has never exercised the authority, called “march-in rights,” and the limits of the power are disputed. But consumer advocates said they believe the mere threat can serve as a check on drug prices, especially in an emergency like the current pandemic.
[...] “Agreements under other transaction authority save time and tax dollars by providing flexibility that is not available in typical federal contracts to purchase material,” the department said. HHS “has been able to enter into partnerships with companies to access entire portfolios of potential products and technologies in the company’s development pipeline. If the science on one potential product doesn’t work out or a new threat emerges, the work can shift quickly to develop a different product candidate in the portfolio to meet the nation’s health security needs.” The statement continued, “HHS always seeks best value to the taxpayer, and when purchasing products that are manufactured with companies’ financial resources, one of the considerations in the price is any federal funding that was provided to develop the product.”