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COVID-19 Medical Countermeasures:

Intellectual Property and Affordability



March 18, 2020
Federal agencies and private industry have begun efforts to develop and test medical countermeasures
(such as antiviral treatments and vaccines) to combat COVID- 19, the disease caused by the novel
coronavirus SARS-CoV-2. For example, Gilead Sciences has begun clinical trials, both in China and in
the United States, to test whether its experimental antiviral drug remdesivir is safe and effective against
COVID- 19. In February 2020, the Biomedical Advanced Research and Development Authority
(BARDA), a division of the Department of Health and Human Services (HHS), entered into agreements
with two pharmaceutical companies-Johnson & Johnson and Sanofi-to develop vaccines for COVID-
19. BARDA has also partnered with Regeneron Pharmaceuticals to develop a monoclonal antibody
treatment for COVID- 19. (See this CRS report for further detail on these and other potential
countermeasures against COVID-19.)
Members of Congress have raised concerns about whether these medical countermeasures, if shown to be
safe and effective, will be affordable and accessible to the public-especially if federal funds contribute
to their development. The Coronavirus Preparedness and Response Supplemental Appropriations Act
(CPRSA), enacted into law on March 6, 2020, contains two provisions relating to affordability of
COVID- 19 countermeasures. First, products purchased by the federal government using funds
appropriated by CPRSA, including vaccines, therapeutics, and diagnostics for COVID- 19, shall be
purchased in accordance with Federal Acquisition Regulation guidance on fair and reasonable pricing.
Second, CPRSA states that the Secretary of HHS may take such measures authorized under current law
to ensure that vaccines, therapeutics, and diagnostics developed from funds provided in this Act will be
affordable in the commercial market.
This Sidebar reviews several intellectual property (IP) rights provisions under current law that the federal
government could use to ensure that COVID- 19 countermeasures are accessible and affordable. Other
actions that the federal government might hypothetically take-such as additional spending, production
by federal agencies, governmental negotiation, or direct price controls-are beyond the scope of this
Sidebar, in that such measures do not implicate IP rights and may require additional legislative action
beyond the current law referenced in CPRSA.



                                                               Congressional Research Service
                                                               https://crsreports.congress.gov
                                                                                   LSB10422

CRS Lega Sidebar
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