What is the history of the reasonable pricing clause?
A2. In 1989, the Bush Administration adopted a policy that products developed in part through research at intramural NIH laboratories should reflect a “reasonable relationship between the pricing of the licensed product, the public investment in the product, and the health and safety needs of the public.” The statement also said “exclusive commercialization licenses granted for . . . intellectual property rights may require that this relationship be supported by reasonable evidence.” Several NIH licenses and Cooperative Research and Development Agreements (CRADAs) contained contractual clauses on this point. Beginning in early 1993, the National Institutes of Health (NIH) and Bristol-Myers Squibb were widely criticized when Bristol-Myers Squibb announced a wholesale price of $4.87 per milligram for Taxol, an important cancer drug that BMS acquired in bulk from a contractor for $.25 per milligram. The retail price of a single injection of Taxol could run in excess of $2,200, and needed
