108th Congress

The Free Market Drug Act

H.R. 5155

Background

Intended to address rising drug costs and the declining number of “breakthrough” drugs that represent large steps forward in public health, the Free Market Drug Act would have provided funds for the National Institutes of Health (NIH) to control and perform research and development (R&D) on pharmaceuticals. Some funds would have been used to expand NIH’s R&D capacity, while other funds would have been granted to universities and pharmaceutical companies that already have the necessary infrastructure to conduct R&D.

The bill would have essentially doubled the amount of Federal support for biomedical research. Drug patents developed with this public funding would have been placed in the public domain to compete with privately developed and patented drugs (the aspect of the bill that led to its “free market” title). Other benefits of this new drug development structure would have included the elimination of incentives to conceal evidence of harmful effects and produce counterfeit drugs.

Provisions of the Legislation/Impact on NIH

H.R. 5155 would have amended the Public Health Service Act (42 U.S.C., 285 et seq.) to create a National Institute for Biomedical Research and Development at NIH. The new Institute would have developed drugs, biological products, and devices in order to increase the number and medical efficacy of products on the market and would have made medical products available to the public at lower prices.

The bill would have authorized appropriations for the Institute of $19.93 billion for fiscal year (FY) 2004, $20.4 billion for FY 2005, $20.91 billion for FY 2006, $21.43 billion for FY 2007, and $21.97 billion for FY 2008.

Status and Outlook

H.R. 5155 was introduced by Representative Dennis J. Kucinich (D-OH) on September 28, 2004, and was referred to the House Committee on Energy and Commerce. No further action occurred on this legislation during the 108th Congress.