The Government Should Buy GLP-1 Drug Patents
The following is the transcript of my closing editorial from episode 137 of my news podcast The Mind Killer. If you like it, please consider subscribing to the podcast
Earlier this episode, we covered one way GLP-1 inhibitor drugs might become less expensive. Ironically, I planned this troop deployment before that happened, but now it’s an even better idea. GLP-1 drugs are amazing. Before they were on the market, I did a lot of writing about how, for most people, losing weight over the long term was nearly impossible, and when it did happen, it had questionable health benefits.
GLP-1 drugs have changed all of that. They reliably result in weight loss and the weight loss reliably results in health benefits. They’re amazing. The problem is that they’re extremely expensive. The pharma companies that make them charge over $1,000/month for the recommended dose. It’s simply not an option for most people. For a while, they were cheaper thanks to an FDA-declared shortage. When there’s a shortage, compounding pharmacies are authorized to make the drug off-patent and sell it for much cheaper. But earlier this year, the FDA declared the shortage to be over, so everything is back to full price. There are ways to get the active ingredients and mix the drugs yourself very cheaply, but that’s not something most people are going to be willing to do.
Earlier, we covered how the FDA could authorize cheap imports through Canada, but that’s not really an ideal solution because it screws the pharma companies, which I don’t want to do. These companies did the world a great service by developing these drugs, and it’s good market incentives for them to get paid. So here’s an idea: the US government should simply buy the patents and tear them up, allowing any company to create and market generic versions. The actual cost of producing the drugs is next-to-nothing, so without the government-enforce oligopoly, prices should drop to a point at which insurance companies won’t have a problem covering them.
It will be expensive, and it should be. We want the pharma companies to be rewarded for their innovative drugs, but even a payoff of tens of billions is basically pennies to the federal government. And it’s not like the pharma companies can charge whatever they want. I think the government should make a global deal with both Eli Lilly, who makes tirzepatide, and Novo Nordisk, who makes semaglutide, but they don’t have to. If Eli Lilly is being uncooperative, we can just buy the Novo Nordisk patent and flood the market with cheap semaglutide, which is the last thing Eli Lilly wants.
No matter the price, it’s likely to save the government money in future spending. The government desperately needs to cut the cost of health care. The population is aging, and the government is often stuck with the bill through Medicare and Medicaid. Medicare is about 15% of the federal budget, and Medicaid is another 9%. Remember that in addition to weight loss, GLP-1 drugs seemingly cause all kinds of positive health outcomes, both directly and due to reduced obesity. Lots of people have run the numbers, and last I checked increasing access to semaglutide or tirzepatide could save trillions in future health costs.
Donald, make a deal! This is your whole thing! Think of the grateful population when you take their medication cost from $1,200 to $50/month. Think of all the people finally meeting their weight loss goals, and saying “thanks, Donald!” Think of how much hotter all the women will be when they can slim down at will! You can do this. It will be your greatest legacy.