Ticker: White House threatens patents of high-priced drugs developed with taxpayer dollars

The Biden administration is putting pharmaceutical companies on notice. Washington is warning them that if the price of certain drugs is too high, the government might cancel their patent protection and allow rivals to make their own versions.

“Today, we’re taking a very important step toward ending price gouging so you don’t have to pay more for the medicine you need,” President Biden said in a YouTube video.

Under a new plan announced, the government would consider overriding the patent for high-priced drugs that have been developed with the help of taxpayer money and letting competitors make them in hopes of driving down the cost.

The administration did not immediately release details about how the process will work and how it will deem a drug costly enough to act. If the plan is enacted, drugmakers are almost certain to sue.

Wall Street hit 2023 high

Wall Street climbed back to its best level in 20 months on Friday following a stronger-than-expected report on the U.S. job market.

The S&P 500 rose 0.4%, enough to clinch a sixth straight winning week for the index, which is its longest such streak in four years. Wall Street’s main measure of health is now just 4% below its record set at the start of last year.

The Dow Jones Industrial Average rose 130 points, or 0.4%, and the Nasdaq composite gained 0.4%.

Yields rose more sharply in the bond market following the report, which said U.S. employers added more jobs last month than economists expected. Workers’ wages also rose more than expected, and the unemployment rate unexpectedly improved.

The strong data keep at bay worries about a possible recession, at least for a while longer, and stocks of some companies whose profits are closely tied to the strength of the economy rallied.