THE REFILL: Latest Dosage of Rx Patent Abuse
WHAT YOU NEED TO KNOW
- Recently, Matrix Global Advisors (MGA) released a white paper that highlights how patent thickets increase barriers for American patients to access affordable biosimilar medications and treatments.
- “It is no secret that many pharmaceutical companies today utilize loopholes within the patent system to extend their monopolies while expanding their profits. This white paper adds to a growing body of evidence that suggests lawmakers in Congress act swiftly to reform policies and prevent bad actors from manipulating the patent system. A key component of this reform should also include strengthening the inter partes review process to ensure that competition isn’t stifled,” stated CAPA Executive Director Matthew Lane.
The white paper titled, “How Patent Thickets Constrain the US Biosimilars Market and Domestic Manufacturing” was authored by Alex Brill and Christy Robinson and explains how some biologic manufacturers prevent competition by creating patent walls with “overlapping, weaker” patents to significantly extend their drug’s monopoly and increase profits while limiting access to affordable alternatives for millions of patients in the U.S.
- CAPA Continues to Monitor the Federal Circuit for a New Opinion in GlaxoSmithKline LLC v. Teva Pharms. USA, Inc.
- Recap via JD Supra – Federal Circuit Panel Rehears Skinny Label Case (GSK v. Teva):
- “On February 23, 2021, a Federal Circuit panel of Chief Judge Prost, Judge Newman, and Judge Moore reheard oral argument in GlaxoSmithKline LLC v. Teva Pharms. USA, Inc.”
- “… in its original opinion the Federal Circuit held that based on the entire trial record there was substantial evidence to support the jury’s finding that Teva induced infringement throughout the term of the patent-at-issue, including during its “skinny label” period.”
- “… In light of the panel’s questions during the oral argument and the concerns expressed by Teva and the amici, it appears that the panel is inclined to issue a more narrowly tailored opinion reaching the same conclusions, but revising its reasoning to focus on the specific facts of the case.”
CAPA previously warned that the recent Federal Circuit Court decision could erode Hatch-Waxman, leading to even higher drug prices. CAPA is closely monitoring the Federal Circuit for a new opinion.
WHAT YOU SHOULD BE READING:
STAT News: Senate Finance Chair Investigates AbbVie Over Its Corporate Tax Strategy
- AbbVie, which is already being probed by congressional Democrats for its pricing practices, is now being investigated by Senate Finance Committee chair Ron Wyden, who accused the drug maker of shifting profits offshore and registering patents in low-tax jurisdictions to consistently avoid paying U.S. corporate income taxes.
Inside Health Policy: Drugs Are Only Sector Not Part Of Historic Drop In Health Care Costs
- While health care costs for a family of four dropped 4.2% in 2020, spending on retail prescriptions drugs remained strong as mail order drug delivery surged and drug prices increased, according to the Milliman Medical Index. The first-ever drop in health care costs in the medical index’s 16-year history is attributed to the pandemic, and the actuarial firm projects that health care spending will come roaring back with an 8.4% increase this year.
WHAT WE’RE SHARING