💊Drug Patents Triple Since 1990, Driving Up Costs
Patents on drugs have exploded, keeping prices high
TL;DR
The number of patents on drugs has more than tripled since 1990, contributing to higher drug prices. Nonprimary patents, unrelated to active ingredients, create a 'patent thicket' delaying generics. US per capita spending on prescription drugs nearly quadrupled from 1990 to 2019.
The number of patents on drugs has more than tripled since 1990, contributing to higher drug prices. Nonprimary patents, which aren't related to the active ingredient, create a 'patent thicket' that delays the release of affordable generics. This has kept drug prices high for longer without actual clinical advancements. Per capita, inflation-adjusted spending on prescription drugs in the US increased from $291 in 1990 to $1,084 in 2019, nearly quadrupling over the period. The rapid growth in nonprimary patents may limit price competition, keeping drug prices high.
Key Points
The number of patents per drug approved in 2019 was 6.9, up from 2.1 in 1990.
Nonprimary patents, which aren't related to active ingredients, made up 84% of total patents.
The average time from drug approval to patent filing increased from 2 years in 1990 to 6.1 years in 2019.
US per capita, inflation-adjusted spending on prescription drugs was $291 in 1990, rising to $1,084 in 2019.
Between 1990 and 2019, the FDA approved 1,981 small-molecule drugs with 10,940 total patents.
Why It Matters
If you're an American paying for prescription drugs, this matters. The rapid increase in nonprimary patents since 1990 has significantly delayed the availability of affordable generics. This means higher drug prices for longer, without actual clinical advancements. The average number of patents per drug has more than tripled, from 2.1 in 1990 to 6.9 in 2019, contributing to limited price competition.
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