Patients struggling with high prescription drug costs may get some relief as the FTC takes action against major pharma companies for allegedly using inaccurate patent listings to block competition from cheaper generic alternatives.
The Federal Trade Commission (FTC) recently filed suit against 10 multinational pharmaceutical manufacturers, including GlaxoSmithKline (GSK), accusing them of submitting “junk patents” to the FDA’s Orange Book. This publication lists approved drugs and their therapeutic equivalents, including generic versions.
By filing these bogus patent listings, the FTC alleges that drug companies are artificially inflating prescription drug prices by preventing generic competition from entering the market.
According to the FTC Chair, Lina Khan, these illegal tactics force Americans to pay unreasonably high prices for medications they need. The FTC’s lawsuit challenges the accuracy of over 300 patent listings across various brand-name drugs, including those for diabetes, weight loss, asthma, and COPD.
The challenged listings include patents for Novo Nordisk’s best-selling weight-loss drug, Ozempic. When a patent listing is disputed, the FDA requires the brand name manufacturer to withdraw or amend the listing within 30 days.
This FTC action follows a similar move in November 2023, where the commission challenged over 100 patent listings for asthma and inhaler medications. The previous challenge resulted in several companies delisting patents and capping out-of-pocket inhaler costs for consumers.
The FTC’s policy statement issued in September 2023 emphasizes their commitment to scrutinizing the improper use of the Orange Book patent listing system. This action aims to ensure fair competition and timely access to affordable generic drugs for consumers.
