Washington, D.C. – The Federal Trade Commission (FTC) has initiated an inquiry into Teva Pharmaceuticals’ practices, specifically their refusal to remove around two dozen patents associated with their asthma and COPD inhalers. This investigation follows the FTC’s demand for Teva to furnish internal communications, analysis, and financial data related to the disputed patents listed in the Orange Book, a federal registry. The FTC alleges that pharmaceutical companies like Teva have been making minor alterations to their products to maintain patents in the Orange Book and impede generic competition. Notably, Teva charges exorbitant prices for inhalers in the U.S., despite selling them for a fraction of the cost abroad.
Teva has been given until July 24 to comply with the FTC’s demand. Despite this development, a spokesperson for the FTC declined to offer any comments, and Teva has yet to respond to requests for statements.
This investigation into Teva represents a significant escalation in the ongoing battle between Democrats and the pharmaceutical industry. Lawmakers have been critical of companies engaging in tactics to prolong patent protections by making superficial changes to their products. The FTC previously called on Teva and nine other companies to voluntarily remove over 100 patents, subsequently expanding the targets to more than 300 questionable patent listings.
In response to pressure from Congressional Democrats, some companies have taken down patents and vowed to lower device costs. However, Teva has been steadfast in its refusal to follow suit, leading to increased scrutiny from lawmakers.
President Biden commended Democrats’ efforts in April to address “abusive patent listings,” particularly for inhalers. The pharmaceutical industry has pushed back against the accusations, asserting that Democrats are mischaracterizing the patenting process and unfairly targeting their patents.
Furthermore, the largest lobbying group for the drug industry, PhRMA, launched a campaign last week to defend intellectual property protections, emphasizing the crucial role they play in promoting innovation and affordability.
Amidst these developments, Teva is facing a legal challenge from Amneal Pharmaceuticals, with a judge ruling in favor of Amneal and FTC and ordering Teva to rectify or remove five patents in the Orange Book. These events underscore the ongoing tensions between pharmaceutical companies and regulatory bodies, prompting a closer examination of industry practices and patenting strategies.