that is called the hatch waxman system and has been in place for over 30 years and here is what that system put together very carefully 30 years ago by congress has done. it has allowed 90% of the drugs produced by the biotech, biopharma industry to be generic today. they are already almost 90% jen eric but it preserved the explosion of new drugs ab better drugs to come on the market over time. what this new ipr system has done is to create a second system that companies like mine have to deal with along with the existing hatch waxman system. and that's dangerous. and the reason it's dangerous is that it is scaring away investors who, as it is, have to wait between 10 and 15 years for us to successfully develop a drug. and when i go to an investor and say, hey, could you put $100 million into my projects to develop this new drug for alzheimer's disease, let's say. and they say, well how long will it take. and i say 10-15 years. and what are your odds of success. one out of every 5,000 molecules goes into people for testing becomes a real drug. and they say, yeah, i'll take that bet.

jody waxman's son was also saved. >> i saw him come back. i saw all of it. it was the scariest moment of my life. >> reporter: but she fears keeping it in her home will send the wrong message. >> i think it should be left to the professionals, not in my home where my addict could just decide i can use because there is somebody there to rescue me. >> reporter: while there's still debate, naxolone is headed to more pharmacy shelves, and both these mothers are grateful their children were giving a second chance at life. >>> we're back in a moment with a story that will have you we thought we' d be ready. but demand for our cocktail bitters was huge. i could feel our deadlines racing towards us. we didn' t need a loan. we needed short-term funding. fast. just like that. you can' t predict it, but you can be ready. another step on the journey. will you be ready when growth presents itself. realize your buying power at open.com. [music] defiance is in our bones. new citracal pearls. delicious berries and cream. soft, chewable, calcium plus vitamin d. only from cit

very active work by henry waxman, who was head of the committee of energy and commerce, a passionate supporter of medicaid, who used in what was regarded as not a very friendly, hospitable period, all the strategies you could think of to break some of these linkages. initially by having women who became pregnant become eligible for medicaid up to a very high income level. having all children who were under 100% of the poverty line become eligible for medicaid coverage. it is that gradual change with a big push with what is called the welfare reform program that president clinton signed into law in 1996. it was that further change between the receipt of welfare and the eligibility, but obviously, the affordable care act, which expanded medicaid coverage up to those who are 130 8% of the poverty line, irrespective of other characteristics, to be eligible for a program like medicaid that really most has transformed this to the program that is now on the books for people because they are low income. i would have personally preferred that as a senate bill at one point allowed, the people

. >> let's bring in doug waxman. he joins us from boston. good to see you. as usual, with things involved, irs railies and palestinians, there's a fog over what is going on. both sides blaming each other. is it clear who is responsible for starting the violence. >> the israeli police entered the al-aqsa compound on sunday. it was the initial incident. they did so on the grounds that they were - they had found a weapons cache, to prevent a palestinian attack. both can lay claim to the other. but it is really the latest in a long series of outbursts at the site, that had been precipitated by growing numbers of israeli jews visiting the site, trying to pray in the site, statements by israeli politicians who demanded access and the ability for jews to prey on the site. it stoked fears that israel plans to ultimately divide or take control of this area. the deal between israel on jordan, there are limits on jews and people of other religions, and they are not allowed to pray there. the palestinian position is that israel is trying to violate the deal. the governm

it's just the fact, but the reality this pricing discuss we're going through, this is waxman all overhen waxman many commentary on pricing and we saw the space get dismantled again. clinton makes comments on it. she's not going to be able to implement change in pricing. even if a democrat comes into office, you're still going to have a republican controlled congress. we're at least three years away from any legal change being implemented. so if you look at the space and say, yeah, it's had an incredible run over five years. we're seeing some global concerns. you're seeing the entire market come off and then the commentary from hillary about pricing has fueled the fire here. i think we're getting to a level that's very interesting. you're seeing some big large cap names being totally dismantled for the wrong reasons. you're looking at a setup that could be one of the best buying opportunities -- >> jerry, it seems like a baby/bath water situation. 144 names in the ibb, 141 of them are down today. 3 are higher. everything is being sold. these companies are different, different products,

it started maybe in march of 2014, what people call a seminole moment in the industry when henry waxmanent a letter to gillead snes scientists over the cost of its help pits c drug. if you look back until that date in march, late march he sent the letter, gillead is up over that period 10%. even though folks are trying to take a much closer look at what's happening in drug pricing, nothing has actually seemed to result from it. it's a lot of fear right now, and folks are really wondering whether all of this talk is actually going to result in anything. raymond james just putting out a note saying of hillary's plan, not going happen. back to you, carl. >> meg terrell, we'll watch that space again today. when we come back, a new report says an apple car is coming, and we could see it before the end of the decade. we're going to take a closer look. plus, microsoft launching office 2016 across the country today and a top executive from microsoft is going to tell us how it all works. we're still watching the markets. dow done 253. awfully close to session lows. "squawk alley" back in a minut

i think it was march 2014 when waxman sent a letter to gilead over the high price of their hepatitis a hit on the whole industry for a while. but not for long and nothing actually resulted. what i'm hearing from analysts is folks aren't really worried about actual regulation on drug prices unless the presidential election goes in a way. >> let me add real quick, i think the gilead letter was a seminal moment so to speak in modern health care history. i would also add, you know, forget hillary clinton for the moment. the democratic front-runner bernie sanders is -- this is like a central platform of his. when you talk about this is going to have legs. i imagine he's going to -- he's already introduced a bill in the 1990s, he marched people across the border to canada to get cheaper drugs. this is the type of story that would reignite what seems to be the point, just an obvious stupid move, i don't want to editorialize, but that came out? >> other words, may have been used. >> sure. >> we'll save those for the break. >> i rescind what i just said. >> good to see you, thanks. coming up,

so real identifiize you're expe senator waxman said this a year ago we learned nothing actually happenednd it's a reason for biotech investors to take profit given all of the noise that's been going on recently. >> i'm sorry, michael. just back it up for a second. you said this is another reason for investors to take profit? >> well, it's another reason for -- today for -- >> bu you't you're not saying bh investors take profit, are you? >> we're saying this is a buying opportunity. once again we've seen this in the past and going forward we're going to continue to see some of this, what we call noise given that this isn't really actually going to happen and nothing is likely to be implemented. >> play hypothetical for a moment. let's say something forms, which companies would you think would be most at risk? would it be an amgen and regeneron with the pcsk-9 drugs? >> i think what's likely is that, and this has been proposed before, is whether medicare has the ability to negotiate price. medicare with part d drugs, cancer drugs, et cetera, medicare is obviously one of the biggest purchas

very active work by henry waxman who was head of the health subcommittee of energy and commerce, a passionate supporter of medicaid who used and what was regarded as not a very friendly hospitable period. all the strategies he could think of to break some of these linkage linkages. s especially women who were pregnant, having all children under 100% of the poverty line become eligible for medicaid coverage. it's that gradual change with a big push during the time that nancy-ann was there with what is called the tannive in program, the welfare reform program that president clinton signed into law in 1996. tanf. it was further change between the receipt of welfare and the eligibility but it's obviously the affordable care act which expanded medicaid coverage up to those who are 138% of the poverty line irrespective of other characteristics to be eligible for a program like medicaid that really most has transformed this to the program that is now on the books for people because they were low income. i would have personally preferred that as a senate bill at one point allowed that people above th