The Federal Trade Commission (FTC) has initiated a challenge against hundreds of alleged “junk” patents held by pharmaceutical companies for a total of 20 brand-name drugs, including popular medications like Ozempic, Saxenda, and Victoza produced by Novo Nordisk. These patents cover a range of conditions, including Type 2 diabetes, asthma, and chronic obstructive pulmonary disease (COPD). The FTC has identified 10 companies involved in the alleged improper listing of drug patents, including Novo Nordisk, AstraZeneca, Boehringer Ingelheim, Covis Pharma, GlaxoSmithKline, Novartis, Teva Pharmaceuticals, Amphastar Pharmaceuticals, and some of their subsidiaries.
According to the FTC, these pharmaceutical companies have been using these patents to block competition and inflate the cost of prescription drugs, ultimately leading to higher prices for consumers. The FTC Chair, Lina Khan, emphasized that these “bogus patent listings” hinder competition and force Americans to pay excessive prices for essential medications.
The FTC has taken action by sending warning letters to the identified companies, highlighting the improper listing of certain drug patents. The FTC has also notified the Food and Drug Administration (FDA) about the challenges, as the FDA maintains a document called the Orange Book that lists patents for approved drugs.
This challenge is an extension of the Biden administration’s efforts to address alleged patent abuses within the pharmaceutical industry. The FTC contends that drugmakers are strategically listing excessive patents to maintain high drug prices and prevent generic competitors from entering the U.S. market.
This move aligns with the broader aim of the Biden administration to enhance healthcare affordability for Americans, a fundamental aspect of President Joe Biden’s 2024 reelection campaign. By challenging these alleged “junk” patents, the FTC aims to promote competition, lower drug costs, and ensure timely access to affordable medications for the American public.
