Petition Seeks Gov’t Action to Allow Generic Semaglutide
Public Citizen is urging HHS to use its authority under 28 USC. § 1498 to permit generic competitors to manufacture Novo Nordisk’s semaglutide, the active ingredient in diabetes drug Ozempic and weight-loss drug Wegovy. In an 8/5 petition, the advocacy group argues that its request for the government to make the rare move under Section 1498 and disregard active patents on the drugs is necessary because Novo Nordisk’s “outrageous pricing of semaglutide threatens to break the coffers of federal health programs.” Under Public Cititzen’s proposal, authorized generic companies could produce semaglutide on behalf of the federal government so they can supply Medicare, Medicaid, and other federal health programs.
The group says Novo Nordisk charges Americans up to 15 times more for these drugs than citizens in Canada, Japan, or Europe. For example, it says Ozempic costs $155 in Canada and $59 in Germany, but the list price of Ozempic is $969 for a month’s supply in the U.S.
Under Sec. 1498, the U.S. government has the authority to make or purchase a patented invention without the permission of the patent holder in exchange for reasonable compensation, Public Citizen says. “When the government exercises its authority under § 1498, the patent holder may not seek injunctive relief, nor can a government contractor or subcontractor be held liable for infringement by the patent holder,” it explains. “In modern cases, reasonable compensation under § 1498 has consistently been determined to be a reasonable royalty payment and not lost profits.”
Public Citizen notes that the authority was exercised 59 times during the Covid-19 health emergency including against Moderna for expanded manufacturing of its Covid-19 vaccine, which generated tens of billions of dollars of revenues for the company.