CSRxP ENCOURAGES HOUSE JUDICIARY IP SUBCOMMITTEE TO ADVANCE BIPARTISAN, MARKET-BASED SOLUTIONS TO LOWER DRUG PRICES BY FOSTERING COMPETITION

Lawmakers Should Advance the ETHIC Act and Skinny Labels, Big Savings Act to Address Big Pharma’s Anti-Competitive Tactics That Block More Affordable Alternatives from the Market And Keep Prices High

Washington, D.C. – The Campaign for Sustainable Rx Pricing (CSRxP) released the following statement ahead of a hearing on Thursday titled “Medicines and IP: Balancing Innovation and Access” in the U.S. House Committee on the Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence and the Internet.

“Big Pharma games the system to block competition from more affordable alternatives to high-priced brand name blockbusters, extend monopoly pricing power and keep prices high for American patients, taxpayers and the U.S. health care system,” said CSRxP executive director Lauren Aronson. “CSRxP encourages members of the Committee to reject Big Pharma’s debunked rhetoric claiming high prices and extended periods of exclusivity are necessary for innovation, and instead advance bipartisan, market-based solutions to lower drug prices by fostering greater competition, including the ETHIC Act that addresses Big Pharma’s patent thickets, and the Skinny Labels, Big Savings Act, that would restore certainty to the skinny-label pathway and bring lower-cost generics and biosimilars to market more quickly.”

Bipartisan, market-based solutions that the House Judiciary Committee can advance to lower prescription drug prices by fostering greater competition include:

Eliminating Thickets to Increase Competition (ETHIC) Act (H.R. 3269)

The ETHIC Act targets abuse of the patent system by cutting down on excessive, duplicative drug patents that Big Pharma uses to extend monopoly pricing. The legislation would streamline patent litigation, safeguard quality patents that improve existing drugs and promote faster market entry of lower-cost generics and biosimilars. Big Pharma’s patent thickets on just five drugs cost more than $16 billion in a single year.

Skinny Labels, Big Savings Act (H.R. 6485)

The Skinny Labels, Big Savings Act would protect access to safe, lower-cost generic drugs by safeguarding “skinny labeling,” a process where generic manufacturers carve out patented uses from a drug’s FDA label so lower-cost generics can be approved earlier for non-patented uses instead of waiting for all brand label method-of-use patents to expire. The legislation would clarify the rules so generic manufacturers are not unfairly sued for offering lower-cost alternatives. Skinny-label generics saved Medicare Part D nearly $15 billion on just 15 drugs.

These policies would help prevent Big Pharma from gaming the patent system, restore certainty for lower-cost generic competition, expand access to biosimilars and deliver meaningful savings for patients, taxpayers and the U.S. health care system.

Read more on the ETHIC Act and Skinny Labels, Big Savings Act HERE.

Read more about how biosimilar competition lowers out-of-pocket costs for patients HERE.

Read more on how Big Pharma games the system to block competition and keep drug prices high HERE.

Read more on bipartisan, market-based solutions to hold Big Pharma accountable HERE.