Increasing Competition To Lower Drug Prices

The U.S. patent system was designed to spur and reward innovation in the public interest by granting inventors exclusive rights to sell their new products for a limited time, typically 20 years. With regard to medicines, this exclusivity period allows big drug companies to recover their research and development costs and earn a fair profit before generics enter the market. However, many pharmaceutical companies exploit this system to extend their monopolies well beyond the intended duration in order to keep prices high. They do this through a variety of anti-competitive tactics used to block timely access to lower-cost generics and biosimilars, forcing patients to pay exorbitant prices—often triple what other wealthy nations pay.  Research indicates that when six or more generic competitors enter a market, prices can drop by up to 95%. By addressing these patent abuses, we can foster a more competitive marketplace that ultimately benefits patients who need affordable access to life-saving drugs.

How Big Drug Companies Use Loopholes to Extend Monopolies and Price Gouge Patients

Drug companies use various shady tactics to extend their monopoly pricing control on medications, making it harder for cheaper generic versions to reach patients:

• Patent Thickets: A complex web of overlapping patents for a single drug or device to make it harder for potential competitors and delay the entry of generic versions into the market.
• Pay-for-Delay Schemes: Brand-name drug manufacturers pay generic companies to delay selling their cheaper versions.
• Citizen Petition Abuse: Some big drug companies misuse the process of filing citizen petitions with the U.S. Food and Drug Administration (FDA). They submit these petitions under the guise of patient advocacy to delay the approval of generic drugs.
• Product Hopping: Pharmaceutical companies move patients from one brand-name drug, usually when that product is about to face competition, to a similar, newer, and more expensive version with a longer patent life.

We are focused on advocating for critical reforms that would help to reduce patent abuses and ensure that patients have timely access to affordable medications. Patients have shared their powerful stories with the media, and legislators, have also spoken on panels and testified before congressional committees highlighting how vital competition is to drive down costs and increase access to essential medications.

This work is not just about policy; it’s about ensuring that every American can afford the medications they need. Through our advocacy efforts, we remain committed to amplifying patient voices and driving meaningful reforms that dismantle the monopolistic practices currently plaguing our healthcare system due to pharmaceutical greed. Learn more at our Patients Push for Competition campaign page.