‘Skinny Labels’ Lead to Earlier Competition: Study

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Researchers from Harvard University and West Virginia University College of Law say the use of so-called skinny labels “led to years of earlier competition for five biologics through 2021, with estimated savings to Medicare of $1.5 billion through 2020.” Writing in JAMA Internal Medicine, the researchers say that although biologics comprise fewer than 5% of prescription drug use, they account for some 40% of U.S. drug spending. The researchers predict that the Medicare savings will grow considerably once AbbVie’s Humira (adulimumab) faces competition from skinny label biosimilars in 2023.

The researchers say that biologics manufacturers often take steps to delay the availability of biosimilars. To help prevent this source of potential delay, they say, the law permits FDA to approve “skinny label” generic drugs and biosimilars that carve out indications protected by patents or regulatory exclusiveness. The study looked at the frequency of approval and marketing of skinny-label biosimilars and their savings to Medicare.

“Skinny labeling for biosimilars is important to ensure timely competition for biologics, helping make these medications more affordable and accessible,” the researchers conclude.

The article says the researchers wanted to look at the impact of skinny labels since recent court rulings are threatening the pathway. In a Teva case that has made it to the Supreme Court involving GlaxoSmithKline’s heart drug Coreg (carvedilol), the court has invited the federal government to submit a brief expressing the government’s views. Teva asked the court to answer this question: If a generic drug’s FDA-approved label carves out all of the language that the brand manufacturer has identified as covering its patented uses, can the generic manufacturer be held liable on a theory that its label still intentionally encourages infringement of those carved-out uses?

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