Three progressive senators are asking for an explanation about why the Chamber of Commerce created a coalition earlier this year to oppose a proposed White House rule that would allow march-in rights to be used to reduce drug costs.
Democratic Sens. Elizabeth Warren (Mass.), Jeff Merkley (Oreg.) and Sen. Bernie Sanders (I-Vt.) wrote a letter to Chamber of Commerce President and CEO Suzanne P. Clark, seeking information about the formation of the “Business Alliance to Stop Innovation Confiscation (BASIC) Coalition” in March.
The coalition’s explicit aim is to thwart the Biden Administration’s attempt to use ‘march-in’ rights to take business patents and impose price controls on drugs developed with taxpayer funding under the Bayh-Dole Act.
In December, the Biden administration unveiled a proposed framework to outline the enforcement of its march-in rights provided by the Bayh-Dole Act, allowing the government to issue its own license of drugs developed with taxpayer funding. The Chamber has labeled this proposal a “threat to progress.”
In their letter to Clark Wednesday, the senators criticized the coalition's formation as a “mistake.”
The lawmakers wrote that the proposed rule is an important move forward and would provide a safeguard against excessive drug prices for drugs developed with public funds. They highlighted the significant impact it could have on medicine access and drug pricing for patients and consumers if finalized.
“But instead of working to support thousands of your members who stand to benefit from efforts to end drug company profiteering, the Chamber has opened a shadowy campaign — led by retired Judge Paul Michel — to ‘stymie the White House’s drug pricing initiatives,'” they added.
The progressive lawmakers argued that the coalition’s agenda contradicts its goal of improving access to high-quality and affordable healthcare for all Americans, and would harm consumers and businesses, both small and large.
They requested Clark to explain how the Chamber decided to form the coalition, whether any analysis has been conducted on how march-in rights would impact its members, and how many members would benefit from reduced health care costs.
The senators also wanted to know why they selected Michel to lead the coalition and which Chamber members have contributed to the BASIC coalition campaign.
When reached for comment, a Chamber spokesperson conveyed in a statement, “The Biden Administration’s proposal to seize the intellectual property rights of American companies poses a threat to progress and risks fostering a hostile environment for U.S. innovation and IP rights.”
“That’s why the Chamber is working with entrepreneurs and advocates to protect the private-public partnerships that have helped the U.S. remain the world’s innovation leader,” the spokesperson added.
