The Government Maintaining Commercial Interest in a Drug Under Development

[WorldT]

Okay, I know this links to a MJ discussion board but what do you think of this approach.
Normally, the government will provide grants but does not retain commercial interest or collect royalties if the drug makes it into production. The best that has always happened was the government gets a pre negotiated price on a pre-negotiated quantity (usually before production). That negotiation doesn't necessarily guarantee a good price (just priority) and after the initial quantity is done, there is no more benefit to the tax payer.

Synopsis: the State of Texas will provide funding to a group (University, hospital, drug company) to conduct studies and trials of a substance already in existence and apply for FDA approval. In return, the state gets a cut of every sale in perpetuity.

Texas Lawmakers Pass Ibogaine Bill That Gives State A Commercial Stake In Psychedelic Intellectual Property

The Texas legislature has passed a bill that would create a state-backed research consortium to conduct clinical trials on ibogaine as a possible treatment for substance use disorders and other mental health conditions, with the goal of developing a drug that would win U.S. Food and Drug...

www.marijuanamoment.net

 

[easyrider]

It's hard to say if the Legislation would hinder professionals that would use these types of treatments or if the Legislation would allow the creation of a medically accepted uniform dose of a psychedelic compound via a pharmaceutical drug. Would this be a first step to allow a DEA schedule 1 controlled substance to be used in a clinical setting ?

Bill

 

[WorldT]

I don't think the legislation is regulating the use of the product.
That being said, I was not looking at it's effect on use of the product itself but rather, benefits to taxpayers who have funded quite a bit of primary and secondary research only to be left out of the profits if the product makes it to production.

 

[emeryjre]

The government takes in money from taxing the profits of the producer, taxes the wages of everyone involved in manufacturing, distribution, sales, etc., etc.
There is a return on the investment without a royalty on sales