Member-only story
Avarice Pharma
1 Product. 165 Patents. $208 billion.
On December 31, 2002, the U.S. Food and Drug Administration(FDA) approved Humira for the treatment of rheumatoid arthritis. Since then, Humira has earned $208 billion globally.
The key patent on Humira was set to expire at the end of 2016. The FDA had approved a competitor’s drug. More competitors were waiting in line to enter the market.
But the patent cover never really went away.
Of the $208 billion, nearly $114 billion came after 2016. AbbVie, the maker of Humira, made full use of a loop hole in the patent system to thwart competitors from entering the market. AbbVie sued its competitors whenever possible and then settled the lawsuits whenever it was required.
Due to a pharmaceutical company’s refusal to allow the system to work, the market forces that were supposed to emerge after the patent expired never materialized.
Was it legal?
- Of-course it must have been.
Was it ethical?
- Depends on who you are asking the question to.
