Humira, a drug produced by AbbVie, is the most lucrative franchise in pharmaceutical history and the top-selling pharmaceutical in the world, generating an annual revenue of $20.7 billion. It’s an anti-inflammatory drug used for autoimmune, rheumatologic, and gastrointestinal diseases.
Since its approval in 2002, the price has increased about 30 times. By the end of 2016, the list price had gone up 60 percent to over $80,00 a year. One company that directly covers its employees' health claims found that Humira was costing the company well over $70,000 a year for one employee. (In 2020, Medicare covered the cost of Humira for 42,000 patients.)
AbbVie has been able to ward off competitors by employing patent-prolonging strategies, such as filing multiple additional patents on the same drug. For example, they obtained a patent on the autoinjector device and a separate patent for the “firing button.” They also obtained patents on production methods and dosing regimens. (Most, if not all, drug companies employ such methods. In fact, 78 percent of recent new patents were for existing drugs.) In all, a total of 247 patent applications for Humira have been filed in the United States.
Competitors, such as Amgen’s Amjevita, have finally entered
the market by developing biosimilar drugs—drugs that are very close in
structure and function to a medicine but not an exact copy. In this way they
were able to invalidate AbbVie’s Humira patents, enabling them to enter the
U.S. market before the technical end of Humira’s monopoly period, which in the
United States was 2039.
It will be interesting to see what happens pricewise. A
spokeswoman for Amgen said, “We price our products according to the value they
deliver.” Huh?
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