In a little noticed order, a federal judge recently raised the intriguing possibility that a so-called patent thicket — a large number of patents that a drug maker obtains to thwart rivals — might stifle competition if the patents were established as the result of some misbehavior.
The order was issued last month in a lawsuit filed by AbbVie (ABBV), which is seeking to prevent Boehringer Ingelheim from marketing a biosimilar version of its Humira rheumatoid arthritis treatment. The medicine generated nearly $12.4 billion in sales last year in the U.S. alone for AbbVie and is protected by dozens of patents, many of which do not expire until 2022.
Unlock this article by subscribing to STAT Plus. To get you started, enjoy 50% off your first 3 months!
GET STARTEDWhat is it?
STAT Plus is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.
What's included?
- Daily reporting and analysis
- The most comprehensive industry coverage from a powerhouse team of reporters
- Subscriber-only newsletters
- Daily newsletters to brief you on the most important industry news of the day
- Online intelligence briefings
- Frequent opportunities to engage with veteran beat reporters and industry experts
- Exclusive industry events
- Premium access to subscriber-only networking events around the country
- The best reporters in the industry
- The most trusted and well-connected newsroom in the health care industry
- And much more
- Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.
About the Author
@Observer079: I think you’re mixed up. What makes patent settlements “pay for delay” or “reverse payments” is that the patent-holder ends up paying the alleged infringer while proclaiming (through settlement) the validity of the patent. The contention is that this happens because the patent-holder splits the monopoly profits off the extended patent term for an invalid patent. If, as here, the infringer is paying the patent-holder for entry before patent expiration, that’s decidedly NOT a pay for delay situation and there’s no inference to be drawn that the patent is invalid.
HH10, I don’t question your explanation – what I surmise is they are not deferring merely out of the goodess of their hearts – and that the future royalties will reimburse whatever they are getting from AbbVee to hold off. Or, as you say, I may just be mixed up.
Hmmm, AbbVee denies paying to delay. Assuming this sentence by our scribe is accurate -, “Both companies agreed not to launch biosimilars in the U.S. until 2023, and will pay royalties to AbbVie.” – this seems to argue precisely for that. It reminds one of the current ‘collusion in plain sight’ dialectic.