Reform Paragraph 4 Certification Process: Analysis
The West Health Policy Center says changes are needed to the generic drug Paragraph 4 certification process to stop innovator companies from using new patents to delay generic drug competition. As reported in Health Affairs, the analysis calls for:
- Shifting the patent litigation burden from generic to brand manufacturers for patents filed after a brand drug is initially approved; and
- Limiting damages for post-approval patent infringement by generic manufacturers to reduce the incentive to engage in patent litigation and hasten generic market entry.
“Reforming the nature of patent enforcement in the pharmaceutical sector to more closely resemble other innovative sectors while limiting infringement damages would hasten the introduction of new generic drugs, reducing drug spending and increasing patient access to therapy,” the article says.
The paper says the current Paragraph 4 requirement in the Waxman-Hatch Act encourages branded drug manufacturers to claim as many patents as possible apply to their products, requiring generic drug companies to defeat each separate patent. Also, it says, the process requires generic drug manufacturers to bear the burden of proving that claimed patents are not infringed by the proposed generic drug before the drug even comes to market.
“The pharmaceutical industry is unique,” the report says, “in both its presumption that any possible patent infringement requires a complete ban of competitors and its placement of the litigation burden on the competing product, not the originator product.”