The Week in Review in Prescription Drug Pricing: P4AD Joint ETHIC Letter, MFN Deals Put to the Test, New AARP Report, and more

Welcome to the Week in Review.

The ETHIC Act & P4AD Joint Letter with AARP & ERISA Industry Committee

This week, Patients For Affordable Drugs Now, AARP, and the ERISA Industry Committee (ERIC) sent a joint letter to congressional leadership urging Congress to pass the ETHIC Act.  The bipartisan bill would curb patent thickets by allowing generic drugmakers to challenge one patent per patent family – lowering barriers to entry for lower-cost competition while preserving protections for true innovation. The letter comes as the House Judiciary Subcommittee on Courts, Intellectual Property, Artificial Intelligence and the Internet will hold a hearing on June 4th on how intellectual property policy impacts prescription drug competition and patient access. A new article from the Epoch Times, featuring three P4AD patient advocates, highlights how brand-name drugmakers build these dense patent thickets, forcing generic competitors to challenge dozens of patents to enter the market. — [P4AD, POLITICO, Congress, House, Epoch Times]

MFN Deals Put to the Test

The administration’s most-favored-nation deals are about to face their first real test, as several new drugs from AstraZeneca, Novo Nordisk, and Pfizer, prepare to launch in the U.S. While the agreements touted requirements for new drugs to be launched in the U.S. at prices aligned with other peer nations, none of the companies would confirm to STAT News whether these drugs would be subject to the MFN deal terms. The lack of clarity and secrecy around these agreements makes it difficult to assess scope, enforceability, and real-world impact. There may be significant gaps in how broadly the agreements apply, raising questions about whether patients will truly see the lower-cost drugs they’ve been promised. — [STAT News]

New AARP Report: U.S. Drug Prices Continue to Rise, Despite Falling Abroad

Prices for the 25 top-selling brand-name prescription drugs have increased by an average of 81% in the U.S., while falling by 13% in other high-income countries. That’s according to a new report from AARP this week. The gap is stark: Eli Lilly’s Trulicity rose 106% in the U.S. while falling 16% abroad, Merck’s Januvia rose 126% in the U.S. while dropping 40% elsewhere, and Amgen’s Enbrel surged 873% despite declining 27% internationally. The findings highlight a key driver of America’s high drug costs: unlike peer nations, drugmakers face few constraints on raising prices over time — leaving patients exposed to unchecked price increases. — [AARP]

ICYMI: With more than 130 patents and a yearly cost of $77,000, AbbVie’s Humira remains a leading example of how patent thickets delay competition. In a new STAT News op-ed, I-MAK founder and CEO Tahir Amin details how overlapping patents and aggressive tactics have extended exclusivity and kept prices high — reinforcing the need for reforms like the ETHIC Act. You can read the full piece here.

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