Acquiring a Drug Patent Application: A Strategy to Extend Monopoly Power?

Ed’s stories explore prescription drug pricing, affordability and access, as well issues surrounding patents, litigation, and legislation. He is also the author of the morning Pharmalittle newsletter and the afternoon Pharmalot newsletter.

Drug manufacturers frequently face accusations of exploiting the U.S. patent system to block competition. Yet a growing legal dispute is highlighting a subtle but pivotal issue: under what circumstances does obtaining a patent application enable a firm to unjustly extend its monopoly over a drug?

The lawsuit, pitting a major health insurer against biotech giant Amgen, is drawing close attention, as its resolution could subject pharmaceutical patent agreements to broader examination—especially when patent tactics are often blamed for keeping drug prices elevated.

Further complicating matters, the Federal Trade Commission has unexpectedly sided with payers and consumers, contending that the practice warrants scrutiny because of antitrust implications.

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