Venture Capitalists Want Drug Prices to Stay High
The federal government has taken some steps to lower the prices of drugs developed with public funds. Venture capital firms that have profited off of these sky-high prices are pushing back hard.
On January 23, the National Venture Capital Association, which represents hundreds of venture capital firms around the country and spends millions lobbying lawmakers each year, sent a letter to President Joe Biden expressing its “absolute opposition” to a proposal meant to lower drug prices. (Trevor Williams / Getty Images)
As the Biden administration launches a long-awaited fight to lower prices of lifesaving drugs developed with public funding, a formidable industry opponent of the effort has emerged: venture capital firms.
The firms’ adamant pushback highlights how dependent Wall Street has become on wildly high drug prices, which, thanks to scant regulation and exclusive patents, mean big returns on investment for venture capitalists, and increasingly unaffordable medicine for patients.
In March 2023, the White House announced plans to review and potentially invoke its long-standing authority — dubbed “march-in rights” — to seize the patents of publicly funded drugs and allow generic competition in order to address egregious cases of drug pricing. The Bayh-Dole Act of 1980 allows such government intervention, but the authority, despite years of petitions, has never before been used.
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