PP_1170x120_10-25-21

PCMA applauds Biden Administration action to stop drug manufacturer patent abuses

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WASHINGTON — Pharmaceutical Care Management Association (PCMA) president and CEO JC Scott issued the following statement on the Biden Administration’s announcement to curb drug manufacturer patent abuses.

JC Scott

“We applaud the Biden Administration for taking real action to reduce prescription drug costs. Drug manufacturer pricing strategies that include patent thickets on certain brand drugs unfairly protect those drugs and biologics from generic and biosimilar competition.

The United States Patent and Trademark Office’s and the Food and Drug Administration’s enhanced review power for applications for drug patents that simply don’t deserve an intellectual property extension is a positive step toward eliminating patent thickets and bringing more competition to the marketplace.

The Administration’s policy is consistent with our recent recommendations for addressing high drug costs via increasing competition through ending intellectual property abuses. Eliminating drug manufacturers’ use of patent thickets, exclusivity extensions, evergreening, and other price-protection tactics are an important part of achieving greater competition and lower drug costs.

Studies recently published in the Journal of American Medical Association (JAMA) show that drug companies are excessively raising list and launch prices. One analysis found that for 500 drugs launched between 2008 and 2021, launch prices increased from an average $2,115 per year in 2008 to $180,000 per year in 2021. A separate study found that list prices of brand drugs on the market increased by 159 percent from 2007 to 2018.

It’s a simple fact that only drug manufacturers have the power to set and raise the list prices for prescription drugs. Pharmacy benefit managers, PBMs, are the only entity in the prescription drug supply and payment chain dedicated to reducing drug costs, improving patient access, and increasing affordability.

We look forward to working with the Biden Administration and Congress to further reduce prescription drug costs for all patients.”


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