Pharma Companies Accumulate Patents to Maintain High Drug Prices
A new study in JAMA reveals that pharmaceutical companies have tripled the number of patents for small-molecule drugs since 1990. This 'patent thicket' delays the market entry of generics.
Pharmaceutical companies have significantly increased the number of patents associated with individual drugs, a practice that delays the market entry of more affordable generic versions and keeps drug prices high. Ars Technica reports on a new study published in JAMA that analyzes the evolution of patenting practices since 1990.
The study found that the average number of patents related to small-molecule drugs has tripled. In 1990, drugs approved had an average of 2.1 patents, while by 2019, this figure rose to 6.9 patents per approved drug.
The majority of this patent increase stems from what are termed 'nonprimary' patents. These patents are typically not related to the drug's active ingredient but rather to minor modifications of non-active ingredients, updates to drug usage methods, or the design of specialized delivery devices, such as auto-injectors.
Collectively, these additional patents on a single drug can form a 'patent thicket.' This complex web of intellectual property rights hinders and delays the market introduction of generic drugs, thereby sustaining higher prices for the original medications without corresponding clinical advancements.