Incentivizing Brand Pharma Cos. To Manufacture In The US

By Frederick Rein, Aviv Zalcenstein and Vineeta Nangia (June 29, 2017, 11:26 AM EDT) -- President Donald Trump recently promulgated an executive order to "Buy American and Hire American" as part of his stated goals to stimulate economic growth, create jobs and support domestic manufacturing. Under this order, the executive branch will use the terms and conditions of federal financial assistance awards to maximize the use of products manufactured in the U.S.[1] While this executive order appears to be directed towards iron and steel products rather than pharmaceuticals, the policy goals of such an order are clear — promote domestic manufacturing and the purchase of those domestically manufactured goods. In a previous article, we discussed various methods by which the Trump administration could incentivize generic pharmaceutical companies to manufacture their products in the United States. However, generic companies are not the only ones manufacturing abroad; brand pharmaceutical manufacturers are doing so as well. One pathway to incentivize brand manufactures to produce medicines domestically and effectuate the policy goals of the recent executive order exists under the Bayh-Dole Act. The legal machinery of march-in rights under the act may be deployed to create economically favorable terms for federal funding of drugs and ensure that commercial ideas are realized in the U.S....

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