[HN Gopher] FTC challenges 'junk' patents held by 10 drugmakers,...
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       FTC challenges 'junk' patents held by 10 drugmakers, incl Novo
       Nordisk's Ozempic
        
       Author : toomuchtodo
       Score  : 108 points
       Date   : 2024-04-30 21:06 UTC (1 hours ago)
        
 (HTM) web link (www.cnbc.com)
 (TXT) w3m dump (www.cnbc.com)
        
       | hombre_fatal wrote:
       | They clarify "junk" in the article (and linked article) to mean
       | "improperly listed", but what does that actually mean for a drug
       | like Ozempic?
        
       | ChrisArchitect wrote:
       | Official release: https://www.ftc.gov/news-events/news/press-
       | releases/2024/04/...
        
       | andy_ppp wrote:
       | I'm so impressed with the FTC lately, here is an excellent
       | interview Jon Stewart did with the FTC chair Lina Khan:
       | https://youtu.be/oaDTiWaYfcM
       | 
       | I did joke I'm really surprised the vested interests selected
       | someone competent who wants to hold these companies accountable
       | to the public.
        
         | germinalphrase wrote:
         | There was a lot of chatter early in her tenure that she would
         | be too young and inexperienced to be at all effective.
        
           | cogman10 wrote:
           | Which is a little silly given her credentials. Her antitrust
           | research has been groundbreaking. She's almost single-
           | handedly revitalized that area of law.
        
           | darth_avocado wrote:
           | Sometimes, the old timers get too comfortable with the status
           | quo and you need someone who is too young to challenge it.
        
             | dylan604 wrote:
             | Let's try that at the top of the chart instead of a couple
             | steps down.
        
         | roughly wrote:
         | There's a lot of talk about "both sides being the same", but
         | the FTC alone has been a night & day difference from previous
         | administrations.
        
           | knowaveragejoe wrote:
           | Nobody suggesting that "both sides are the same" has a shred
           | of intellectual honesty.
        
             | wddkcs wrote:
             | Declarative moral statements like this are so vacuous. Of
             | course there are intellectually honest people who believe
             | both parties are the same. They may be evaluating or
             | prioritizing the evidence differently, but that doesn't
             | make one side or the other 'dishonest'. Casually impuning
             | the morality of an entire swath of people is rhetoric that
             | drives division and strife, not progress.
             | 
             | For example, yes Bidens FTC is a standout actor, but 'both
             | sides' just voted to perpetuate overseas wars with more
             | American tax dollars. In terms of the American war machine,
             | it's 100% accurate to say both sides are the same.
        
               | roughly wrote:
               | Then I suppose the appropriate way to phrase this would
               | be "people suggesting both sides are the same need to
               | qualify their statements."
        
               | pessimizer wrote:
               | You're making the assumption that they haven't, at
               | length, until people got uncomfortable and wanted to
               | leave.
        
               | afavour wrote:
               | The scenario you're proposing sounds like one person
               | lecturing another and not listening to any counter
               | points... wanting to leave feels like a natural reaction.
        
           | toomuchtodo wrote:
           | I would like to point out the administration's
           | accomplishments in the last two weeks (shamelessly copied
           | from Matt Stoller's recent piece "This Is What Governing
           | Looks Like")
           | 
           | * Banned non-compete agreements for 40 million workers
           | 
           | * Raised overtime wages for 4 million salaried workers
           | 
           | * Forced airlines to automatically offer refunds for canceled
           | flights and poorly handled baggage
           | 
           | * Banned illegal junk fees in mortgage lending
           | 
           | * Forced divestment of TikTok from Chinese ownership
           | 
           | * Blocked corporate merger in insulation
           | 
           | * Filed to block a corporate merger in fashion
           | 
           | * Announced tariff increases on steel to protect domestic
           | producers
           | 
           | * Announced an end to the duty free period on Chinese solar
           | panels to encourage U.S. manufacturing.
           | 
           | * Passed the first Federal privacy law to stop data brokers
           | from selling sensitive information to China and Russia
        
             | adventured wrote:
             | Most of it needs backed up by Congress or it'll just go
             | away given a few administrations.
             | 
             | > Announced tariff increases on steel to protect domestic
             | producers
             | 
             | The Trump Admin went after China far more than Biden has so
             | far, the Democrats were overwhelmingly silent about how
             | that qualified as impressive governing. He needs to do a
             | lot more to bolster US labor and US manufacturing, it's not
             | even a good start yet.
        
               | Retric wrote:
               | Mostly people don't give praise because Trump's
               | protectionism was largely ineffective.
               | 
               | https://en.wikipedia.org/wiki/Trump_tariffs
        
             | dylan604 wrote:
             | > * Passed the first Federal privacy law to stop data
             | brokers from selling sensitive information to China and
             | Russia
             | 
             | At the risk of sounding dismissive, I'd much rather they
             | banned the selling of sensitive information. Full stop.
             | China and Russia have much less reach into my day-to-day
             | than any of the other buyers much closer to home like a
             | local gov't bodies let alone private corps.
        
               | toomuchtodo wrote:
               | https://news.ycombinator.com/item?id=40203558
        
           | bogwog wrote:
           | You can tell she's doing a good job by the number of hit
           | pieces in the WSJ. Just search "Lina Khan WSJ" and have fun
           | scrolling through the headlines.
        
             | roughly wrote:
             | I can't find it right now, but there's a quote about being
             | able to tell someone's character by whether they've made
             | the right enemies.
        
               | toomuchtodo wrote:
               | "I ask you to judge me by the enemies I've made" -
               | Franklin D. Roosevelt
        
             | JumpCrisscross wrote:
             | To be fair, her first two years were bunk. She had
             | management and morale issues, a series of court losses
             | (including one glaringly incompetent one with Facebook) and
             | then a retrenchment that looked like submission.
             | 
             | It wasn't. She was re-working her game. It looks like it
             | worked and I've gone from critic to fan. But the FTC was
             | mockably awful 2020 - 2022, and a non-entity early 2023.
        
               | dylan604 wrote:
               | There will always be carry over from one administration
               | to the next at the bureaucratic level within the various
               | agencies. It takes time to figure out how to get them
               | aligned to make progress with the new administration's
               | agenda.
        
               | JumpCrisscross wrote:
               | > _takes time to figure out how to get them aligned_
               | 
               | From what I understand, Khan was learning to manage a
               | large team. She failed at it. Noticed. Corrected. And
               | seems to have figured it out.
               | 
               | The early FTC was highly centralised. In its new
               | iteration, staffers appear to be trusted to pursue probes
               | on their own. This not only broadens their firepower, but
               | brings to the table staffers' decades of experience
               | around what wins in court.
        
               | toomuchtodo wrote:
               | You might say she's running the FTC like a startup: hire
               | exceptional people you trust to execute with autonomy.
        
               | JumpCrisscross wrote:
               | > _she 's running the FTC like a startup: hire
               | exceptional people you trust to execute with autonomy_
               | 
               | The exceptional people were there from the start. In the
               | early days, their complaint was around being locked out
               | of decision making. Khan and a small group ran the FTC
               | like academics.
               | 
               | That failed both internally and in the courts. To her
               | credit, she noticed the failure, regrouped and re-
               | oriented. But the change wasn't in star hiring but
               | recognising the talent that was being ignored.
        
               | dylan604 wrote:
               | What ever the cause of the slow start, it'll be a shame
               | if it all comes to a grinding halt on Jan 20, 2025 now
               | that this agency seems to be effectively doing its job.
        
           | jtriangle wrote:
           | Both sides are the same in the way that, they _generally_
           | work in tandem to erode the common individual in favor of the
           | wealthy. That doesn 't mean the totality of what they do is
           | to that end, it doesn't mean that they aren't at odds with
           | eachother as to how to reach that collective goal at times,
           | just that, pragmatically, it doesn't matter anywhere but on
           | very short, ultimately inconsequential time scales.
           | 
           | These things get planned and implemented far outside of the
           | normal 2/4/6 year election cycle, so it's easy to hide what's
           | actually happening.
           | 
           | Fact is, red tie, blue tie, they're all drinking and
           | merrymaking together, they attend the same parties, they bang
           | the same hookers, and they're in the same corporation's
           | pockets. You have some outliers here and there, but, aside
           | from the occasional filibuster, they do little more than
           | create a spectacle.
           | 
           | None of this is unusual, it's simply how systems of
           | government have been exploited and subverted since humans had
           | the idea the government should exist. That being a somewhat
           | esoteric idea only serves to further the degeneration of a
           | system, much in the same way doing nothing, which is likely
           | what some find so offensive about the idea that "both sides
           | are the same", furthers the degeneration of a system.
        
             | blackhawkC17 wrote:
             | This frankly sounds like cynical rubbish.
        
             | kstrauser wrote:
             | In the last week I've read stories here and elsewhere about
             | the current administration:
             | 
             | - Ending non-competes
             | 
             | - Ending salaries being used to avoid paying overtime
             | 
             | - Un-banning marijuana
             | 
             | - Restoring net neutrality
             | 
             | - Fining carriers for sharing location data
             | 
             | - And now, challenging dumb patents
             | 
             | Despite your cynical take, that looks like a lot of stuff
             | that's good for me as an individual person.
        
           | pavon wrote:
           | Do they? I'm not well immersed in the socials, but I thought
           | "both side are the same" peaked around 2000, and now the
           | pendulum has swung to "the other side is wrong in every way".
        
           | umanwizard wrote:
           | I think for stuff controlled by the president, "both sides
           | are the same" is indeed clearly false. But there's a decent
           | argument to be made that it doesn't really matter who you
           | vote for for Congress, since the system is structured to
           | require both parties to agree on almost any controversial
           | legislation.
        
         | madeofpalk wrote:
         | Challenging things like this is a great first step, but they've
         | got to actually win.
        
       | akira2501 wrote:
       | Good.
       | 
       | They patented inhalers for a second time. It's the exact same
       | drug. The only thing that changed was the propellant. It went
       | from R-12 to R-134a. Everyone who had to switch out R-12 from
       | refrigeration to drug manufacturing switched to R-134a. There was
       | absolutely _nothing_ novel about it.
       | 
       | It was _criminal_ to allow them the second patent for just the
       | propellant change. It took generic $5 inhalers off the market and
       | replaced them with $95 inhalers. It was was one of the most
       | corrupt swindles I've ever personally seen.
        
         | RheingoldRiver wrote:
         | > It took generic $5 inhalers off the market and replaced them
         | with $95 inhalers.
         | 
         | OOTL, what is stopping companies from making generics of the
         | older version & patients just not using the new version?
        
           | chemeng wrote:
           | It is illegal to use the previous propellant, so they can't
           | be manufactured anymore.
        
             | chroma wrote:
             | Where can I read more about this? If that's true, it seems
             | like a problem of over-regulation, not drug companies being
             | exploitative.
        
               | hed wrote:
               | R-12 is banned for manufacture by international treaty
               | (which carries the force of law):
               | https://en.wikipedia.org/wiki/Dichlorodifluoromethane
        
               | striking wrote:
               | https://en.wikipedia.org/wiki/Dichlorodifluoromethane
               | 
               | > In compliance with the Montreal Protocol, its
               | manufacture was banned in developed countries (non-
               | article 5 countries) in 1996, and in developing countries
               | (Article 5 countries) in 2010 out of concerns about its
               | damaging effect on the ozone layer.
               | 
               | Seems a reasonable regulation to me.
        
               | prepend wrote:
               | Not reasonable if it prevents the minuscule amounts
               | required for inhalers.
               | 
               | A more nuanced regulation would limit the production
               | volume if there are still valid use cases.
        
               | striking wrote:
               | The sentence immediately after the quoted section
               | provides additional nuance, reading as follows:
               | 
               | > Its only allowed usage is as a fire retardant in
               | submarines and aircraft.
               | 
               | There is no reason to continue the use of R-12 in
               | inhalers when R-134a is a drop-in replacement, though
               | you're welcome to do your own research if you still
               | disagree with the legislation.
        
               | modriano wrote:
               | You can read about it in the wikipedia page [0]. This
               | refrigerant isn't manufactured anywhere anymore because
               | it was creating a hole in the ozone layer.
               | 
               | [0] https://en.wikipedia.org/wiki/Dichlorodifluoromethane
        
               | nick__m wrote:
               | The first I know about is the montreal protocol for the
               | ozone. Countries (all 19X of them) agreed banned CFCs and
               | pharmaceutical products weren't excluded.
        
               | mitthrowaway2 wrote:
               | Well, patents are only supposed to be granted if an idea
               | is non-obvious to someone skilled in the field. Replacing
               | an illegal propellant with a legal one should be obvious
               | to anyone in the field, so this patent deserves to be
               | challenged.
        
               | dylan604 wrote:
               | It is true, which implies your understanding of the
               | situation is confused. I dislike bigPharma as well, but I
               | at least point the blame canon at the right target and
               | not just indiscriminately point it at the person I
               | dislike the most in the fight.
        
               | pessimizer wrote:
               | That's just your bias.
               | 
               | > Several inhaler manufacturers formed the International
               | Pharmaceutical Aerosol Consortium, a lobbying group
               | dedicated to, among other goals, persuading lawmakers and
               | regulators to ban inhalers with CFCs. The group spent
               | hundreds of thousands of dollars, and in 2005, the FDA
               | ruled that CFC inhalers would be phased out beginning in
               | 2009. As a result of the ban, newer albuterol products --
               | including Proventil HFA (which was approved in 1996),
               | Ventolin HFA (approved in 2001), and ProAir HFA (approved
               | in 2004) -- would be free from competition from
               | inexpensive CFC-containing generics. HFA inhalers were
               | protected by new patents on both the HFA propellants and
               | the devices themselves, and they generally cost much more
               | than generic CFC inhalers.
               | 
               |  _" Product Hopping in the Drug Industry - Lessons from
               | Albuterol"_
               | 
               | N Engl J Med. 2022 Sep 29;387(13):1153-1156. doi:
               | 10.1056/NEJMp2208613. Epub 2022 Sep 24.
               | 
               | https://pubmed.ncbi.nlm.nih.gov/36155425/
               | 
               | [pdf] https://wvpublic.org/wp-
               | content/uploads/2023/06/Tu-2022-Wout...
        
           | ceejayoz wrote:
           | Among other things, they pay them not to.
           | 
           | https://www.nbcnews.com/news/amp/ncna447916
           | 
           | > Known as "reverse settlement payments," or "pay-to-delay"
           | deals, the financial arrangements are a unique but common
           | practice in the pharmaceutical industry. Essentially, they
           | allow drug manufacturers in some instances to pay competitors
           | not to manufacture generic versions of their products,
           | thereby ensuring that they maintain patent protection for as
           | long as possible.
        
             | azemetre wrote:
             | How is this NOT a violation of antitrust laws? How does
             | this not hurt market competition or even more basic, how is
             | this not collusion or a price cartel?
        
               | observationist wrote:
               | It is. They make far more money than they lose in
               | penalties when officials bother enforcing on any
               | technical violations. It's such a huge pain in the ass to
               | try enforcing these little violations and there's so much
               | corruption and bureaucracy preventing effective
               | enforcement of the big ones that any action against these
               | companies at all is a noteworthy accomplishment for a
               | regulatory agency.
               | 
               | Lina Khan is punching way above her weight and using the
               | FTC to do the job it's ostensibly designed for. She's
               | aggressively poking some very ornery and obnoxious bears,
               | hopefully some precedents will be set and corruption
               | repaired. Most regulators are incentivized to play within
               | the whole wink-wink-nod-nod government revolving door
               | system of crony capitalism, but Khan doesn't seem to be
               | playing that game, which is nice.
        
           | LeifCarrotson wrote:
           | Drug salespeople, doctors, pharmacists, and insurance
           | companies.
           | 
           | If you get a prescription for a ProAir HFA inhaler, which is
           | parented because it uses R134a, even if you did want to do
           | your own research and evaluate whether the generic with the
           | different propellant would work you can't just go buy the
           | generic, you have to do extra work to get a prescription that
           | applies.
           | 
           | Doctors don't write prescriptions for albuterol sulfate, they
           | write ProAir HFA and it's up to the consumer to push back.
           | They don't even advise taking OTC ibuprofen or
           | pseudoephedrine, they say Advil and Sudafed. It's a pet peeve
           | of mine, but it seems I'm the weird one in that respect...
        
             | transcriptase wrote:
             | In Canada pharmacists will generally just ignore brand
             | names written by MDs and fill with generics unless there's
             | a known difference or the patient specifically asks (and is
             | willing to pay more).
        
               | haldujai wrote:
               | It's similar in both countries with some slight variation
               | in the US depending on the state.
               | 
               | Unless the prescription is marked as "do not substitute"
               | pharmacists generally have the discretion to substitute
               | for a generic, in fact a few states require it.
        
             | prepend wrote:
             | In the US if a doctor prescribed a brand name, the Rx works
             | for the generic as well. For me, it usually happens
             | automatically at the pharmacy with no action on my end.
        
           | pessimizer wrote:
           | A group of pharmaceutical companies that held patents for
           | non-CFC inhalers got together and created the "International
           | Pharmaceutical Aerosol Consortium" to lobby in order to get
           | the generic version banned.
        
         | flipbrad wrote:
         | This isn't (AIUI) relevant to that exact problem. As Wikipedia
         | explains:
         | 
         | "[T]he Orange Book lists patents that are purported to protect
         | each drug. Patent listings and use codes are provided by the
         | drug application owner, and the FDA is obliged to list them. In
         | order for a generic drug manufacturer to win approval of a drug
         | under the Hatch-Waxman Act, the generic manufacturer must
         | certify that they will not launch their generic until after the
         | expiration of the Orange Book-listed patent, or that the patent
         | is invalid, unenforceable, or that the generic product will not
         | infringe the listed patent. "
         | 
         | It sounds like it's easy for manufacturers to.keep adding
         | patents, and the onus is on the generics to make the case that
         | they're not violating. Perhaps most are just scared away, until
         | every listed patent expires (and no new ones are added in the
         | interim)
        
         | mynameisnoone wrote:
         | The exact same refrigerants that were used in US automotive
         | air-conditioning, although now they moved on or are moving from
         | R-134a to HFO-1234yf.
         | 
         | I still have a dozen vintage cans of R-12 but no vehicle that
         | uses them.
        
           | culopatin wrote:
           | I replaced all my r12s with propane. Worked much better than
           | the 134 and it was cheaper.
        
             | akira2501 wrote:
             | > propane
             | 
             | a.k.a. R-290
        
       | microtherion wrote:
       | Presumably they have their grounds for the challenges, and the
       | article says that each drug is covered by numerous patents, but I
       | would be very surprised if Ozempic in particular lost ALL patent
       | protection. Semaglutide itself seems to be a fairly revolutionary
       | product, and reasonably different from Liraglutide (which I think
       | predated it).
        
       | siliconc0w wrote:
       | The cost of healthcare should trend down as more and more drugs
       | enter the public domain and generics become available. However
       | this clearly isn't happening.
       | 
       | It is also interesting when does the social benefit of a drug
       | outweigh the benefit of creating an 'incentive' for drug
       | companies. If GLP-1 drugs are worthy of the hype, we're basically
       | talking about 20 years of unneeded suffering and trillions of
       | dollars of avoidable damage to society all to give a drug company
       | a limited monopoloy. At a certain point the US should just
       | eminent domain the patent, give them some reasonable
       | compensation, and make the drug broadly available to all
       | Americans similar to COVID vaccines.
        
         | chroma wrote:
         | Semaglutide was invented before 2008. Its patent expires in a
         | few years.
         | 
         | It takes a long time to get drugs through trials and get the
         | FDA to approve drugs for new uses. Pharmaceutical companies
         | spend billions on drugs that never make it through trials. If
         | you don't enforce their patents, companies won't make new
         | drugs.
        
         | bodiekane wrote:
         | I wonder if a system like that could work.
         | 
         | SpaceX and numerous other companies were able to draw in
         | billions of dollars of funding for R&D to chase after US
         | Government contracts that could only be won by proving massive
         | technological feats (reusable rockets, etc).
         | 
         | Hypothetically, it seems we could do something similar for
         | drugs. Instead of "If you make a medicine that works, you get a
         | monopoly to sell it for X years" it could just be "If you make
         | a medicine that works, you get a check for $X, and then the
         | drug is immediately generic".
        
       | JumpCrisscross wrote:
       | FTC announcement: https://www.ftc.gov/news-events/news/press-
       | releases/2024/04/...
       | 
       | Note that this comes following "the Commission's November
       | challenges led to Kaleo Inc., Impax Labs, GlaxoSmithKline, and
       | Glaxo Group delisting patents in response to the FTC's warning
       | letters" and subsequently "AstraZeneca, Boehringer Ingelheim, and
       | GlaxoSmithKline all announc[ing] commitments to cap inhaler out-
       | of-pocket costs at $35." This process is precedented with
       | delivering wins.
        
       | superq wrote:
       | Why are these junk patents, especially the Ozempic one? I want to
       | believe! But I'm skeptical that it is a junk patent.
        
       | modeless wrote:
       | Novo Nordisk stock didn't fall so either this was already known
       | or people don't think it will have any effect.
        
       | dpc_01234 wrote:
       | This article repeats the same thing 5 times or so. The headline
       | is almost the whole article.
        
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