FTC Targets 'Junk' Patents to Reduce Drug Prices, Enhances Competition

The Federal Trade Commission has issued warnings to 10 pharmaceutical companies over alleged bogus patents, aiming to lower medication costs and boost generic drug production.

The FTC is challenging over 300 patents across 20 brand-name drugs, including popular medications like Ozempic, to prevent price inflation due to restricted generic production.
Pharmaceutical companies are given 30 days to amend or certify their patent listings, facing potential legal consequences if they fail to comply.
The crackdown is part of a broader strategy by the Biden administration to make healthcare more affordable and stimulate market competition.
Some companies, like AstraZeneca and Teva, defend their patents, claiming they do not stifle competition but rather clarify the intellectual property landscape.
Generic alternatives for drugs like Ozempic are unlikely until patents expire, with the earliest possible date for Ozempic being 2031.