June 20, 2024
We're closing in on the weekend. Here's a look at why drug patent reform could become an important piece of a year-end health deal.
- Since next week is House-only, we'll be back in your mailbox Tuesday — or sooner if there's breaking news.
1 big thing: Patent bill gets boost from CBO score
A new CBO score is encouraging backers of a bill to overhaul drug patents who are trying to include it in a year-end health deal.
Why it matters: The bipartisan measure from Sens. Richard Blumenthal and John Cornyn would generate about $3 billion in savings over a decade, making it a potential offset for extending telehealth flexibilities or averting Medicare physician payment cuts.
Driving the news: The new score generated about three times as much savings as in a 2022 CBO projection.
- "The new score will undoubtedly add to growing bipartisan momentum on Capitol Hill to pass market-based solutions to hold brand-name drug companies accountable for gaming the patent system," said Jon Conradi, a spokesman for the Campaign for Sustainable Rx Pricing, which comprises insurers, providers and others.
Between the lines: The Cornyn-Blumenthal bill has two main components, both aimed at preventing drug companies from gaming the patent system to fend off competition from less expensive generics.
- One piece targets "product hopping," in which a company makes small changes to the formulation of a drug in a bid to extend market exclusivity.
- The other targets the use of multiple patents on the same product, referred to as "thickets," also to forestall competition.
The pharmaceutical industry is most opposed to the product hopping section of the bill, saying it would hinder research that happens after a drug's initial approval.
- Lobbyists say it's still possible that the bill could be split up to pass only the less controversial patent thicket piece.
- Still, Megan Van Etten, a PhRMA spokesperson, said the group has concerns with the patent thicket piece, characterizing it as "Congress prohibiting innovators from enforcing lawfully granted patents."
What they're saying: "I think we will have movement, but I'm not sure of the exact timing," Blumenthal told Axios today.
- The measure advanced out of the Senate Judiciary Committee last year on a bipartisan basis, along with other drug pricing patent bills, like cracking down on "pay for delay" arrangements.
- Judiciary Ranking Member Lindsey Graham at a hearing last month expressed frustration at the lack of movement on the bills so far. "We pass all these bills. We have a common view of the problem and nothing ever happens," he said.
- But a health care package in the lame duck session could provide an opening.
2. Catch me up: China fentanyl and Bayer's lobbying
1. Fentanyl trade: Some members of the House Select Committee on the CCP are forming a working group to address China's role in the fentanyl crisis as part of a more aggressive push to cut off supplies, Axios' Ivana Saric reports.
2. Bayer lobbying: The biotech giant persuaded House Republicans to insert language in the farm bill that could insulate the company from lawsuits alleging that its weedkiller Roundup causes cancer, WaPo reports.
3. Cheaper GLP-1s: Manufacturers in India and China are poised to produce lower-cost versions of blockbuster weight-loss drugs like Wegovy now that patents are running out, Nature reports.
4. Eli Lilly lawsuits: The drugmaker sued six more entities, including medical spas and wellness centers, for selling products claiming to contain the active ingredient in its diabetes drug Mounjaro, per Reuters.
✅ Thank you for reading Axios Pro Policy, and thanks to editors Adriel Bettelheim and David Nather and copy editor Brad Bonhall. Do you know someone who needs this newsletter? Have them sign up here.
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