By Patricia Kelmar | Senior Director, Health Care Campaigns, US PIRG
Members of Congress are in their home districts preparing for Election Day. When they return to Capitol Hill in mid-November, they will have to decide on legislation that could lead to lower or higher prescription drug prices. Will they help millions of American patients or repay the largesse of pharmaceutical companies that have contributed to their campaigns?
High drug prices are top of mind for many Americans. More than four in five say drug prices are “unreasonable,” according to a Kaiser survey. That’s why Congress gave Medicare the power to negotiate lower drug prices for 10 of the most expensive, commonly prescribed drugs. This should only be the first step. Both countries have expressed increased interest in tackling high prescription drug costs by reforming the patent system, which has a huge impact on competition in the industry. However, two bills could make it even more difficult to have a competitive prescription drug market.
When a pharmaceutical company creates and patents a new drug, it wins the exclusive right to sell that drug at whatever price it chooses for 20 years. On an ongoing basis, brand name drug companies register as many patents as they can for their drugs.
Drug companies typically use these overlapping patents, also known as “patent thickets,” to legally prevent generic and biosimilar competitors from reaching pharmacy shelves. Biologics are used for treatments, including vaccines or some cancer therapies. The generic version of a biologic drug is called a biosimilar.
When representatives return after Election Day, the House must pass the bipartisan Affordable Care Act, which the Senate has already approved. The bill limits the number of certain patents a pharmaceutical company can bring to court to protect its monopoly pricing.
Fewer patents lower the price barriers for a biosimilar company to challenge patent density, meaning we’re likely to see more lower-priced biosimilars on pharmacy shelves sooner. The FDA found that even a generic competitor undercuts the manufacturer’s average price by as much as 39%. With four generic competitors, prices are down 79% from the brand name price of the drug before the competition.
You would think that every member of Congress would support passing measures to lower drug prices for their constituents. Still, some senators are trying to push through two bills that would make it easier for drug companies to build patent thickets that block competition. The Senate Judiciary Committee is likely to push these two bills for a vote after the election.
We oppose the Patent Restoration Act, which would allow patents on natural phenomena, laws of nature, and abstract ideas. This is absurd. These things do not belong to any person or business. This dramatic change could have devastating effects on drug pricing by expanding the universe of patentable items, making it easier than ever for drug companies to build patent thickets. Patents—and the monopoly pricing that goes with them—should be reserved for truly new human innovations, as patent law originally intended.
The other bill we oppose would make it more difficult than ever to remove a patent that should never have been issued in the first place. Aptly named the PREVAIL Act because it would help companies overcome challenges to their patents by eliminating the public’s ability to challenge wrongfully granted patents. As concerned citizens, we deserve an opportunity to question the US Patent and Trademark Office about its patent granting decisions. A business should not be the only entity with this right. PREVAIL takes away the public’s right to present evidence that a patent is invalid. This would silence the patient’s voice when it comes to inappropriate drug patents.
These are complex issues, and we don’t expect everyone in Congress to be an expert on them. However, we expect them to protect the physical, mental and financial health of their constituents. With that in mind, we applaud Congress’ willingness to continue to find ways to protect patients from high drug prices and urge them to vote yes on the Affordable Care Act.
We also hope that enough people on Capitol Hill realize that the Patent Rights Restoration Act and the PREVAIL Act are not going to make things better for the voters in their districts. On the contrary, these two bills repeal some of the strongest tools we have to prevent pharmaceutical companies from locking out competitors and keeping prices artificially inflated years after their patents expire.
Editor’s note: Patricia Kelmar is senior director, health campaigns at the US Public Interest Research Group. Reader reactions, pro or con, are welcome at [email protected].
Keywords
Congress,
prescription drug prices,
Medicare,
drug patents,
patent thickets,
generic drugs,
vaccines,
cancer therapies,
Patient Affordable Prescription Act,
biosimilar drugs,
Senate Judiciary Committee,
Patent Restoration Act,
PREVAIL Act