The Federal Trade Commission (FTC) announced on Tuesday its intent to challenge numerous questionable patents held by pharmaceutical companies. These patents are associated with 20 different brand-name drugs, with Novo Nordisk’s popular drugs Ozempic, Saxenda, and Victoza among them. The FTC sent letters to 10 companies, including Novo Nordisk, AstraZeneca, Boehringer Ingelheim, Covis Pharma, GlaxoSmithKline, Novartis, Teva Pharmaceuticals, and Amphastar Pharmaceuticals, as well as some of their subsidiaries. Most of these patents cover medications for Type 2 diabetes, asthma, and inhalers for chronic obstructive pulmonary disease (COPD).
The FTC’s actions aim to tackle what it calls “bogus patent listings” by pharmaceutical companies. By improperly listing patents, these companies hinder competition and drive up the cost of prescription drugs. This practice results in American consumers paying exorbitant prices for essential medications. FTC Chair Lina Khan emphasized the importance of challenging these patents to ensure access to more affordable and innovative drug options. The FTC also alerted the Food and Drug Administration (FDA) about these challenges, as the agency manages patent listings for approved drugs through the Orange Book.
Expanding Efforts and Addressing Alleged Patent Abuses
This recent announcement is part of the Biden administration’s broader efforts to crack down on alleged patent abuses within the pharmaceutical industry. The FTC contends that drug manufacturers are unjustly listing multiple patents for branded drugs to maintain high prices and prevent generic competition in the U.S. market. These patent disputes align with President Joe Biden’s goal of making healthcare more affordable for Americans. The administration views this issue as a crucial aspect of its healthcare policy agenda leading up to the 2024 presidential election.
Jon Donenberg, the National Economic Council deputy director, commended the FTC’s collaboration with the FDA to address patent practices in the pharmaceutical sector. By combating these tactics, the FTC aims to lower costs for various prescription drugs, including those used for weight loss and diabetes. This proactive approach reflects a commitment to promoting fair competition and ensuring access to essential medications for all Americans.