Abusive patenting: Novartis & Co are using their “evergreening” practice to rip off the Swiss population, too

New drugs are protected by their manufacturers by dozens, sometimes even more than 100 patents. Their deliberate staggering of the patent filings extends the duration of the market monopoly for a product far beyond the 20 years actually stipulated by the agreement on intellectual property rights (TRIPS) of the World Trade Organization (WTO). The endless strategic accumulation of patents, known as “evergreening”, has long been a vital aspect of Big Pharma’s business model. Based on the number of patents registered, Switzerland likes to boast of being the most innovative country. But the vast majority of them are unjustified – at least in the pharmaceutical sector – and instead of real progress, they only bring high monopoly prices, which are increasingly straining patients as well as state healthcare costs.

To delay market entry of competing generic products for as long as possible, pharmaceutical corporations systematically initiate protracted legal disputes. This occurs mainly in the United States, the by far most important drug market, but also in India because of its strong generic industry. Investigations by Public Eye show that Novartis plays a particularly significant role in this. Between October 2019 and October 2022, the Swiss giant filed no fewer than 25 lawsuits against 18 pharmaceutical companies in US courts for alleged infringement of nine of its Entresto patents. Even the Biden administration was sued by Novartis for introducing a government price control on Entresto. At stake are the over US$ 6 billion – including CHF 39 million in Switzerland – generated globally by this heart drug in 2023, representing the highest sales of all the group’s products. In eight years, this blockbuster has raked in more than $20 billion.

In the United States, India and increasingly also in Switzerland, it is patients relying on vital drugs like Entresto and public health budgets that are paying the bill for this. In Switzerland, medicines account for 1 in 4 Swiss francs of compulsory health insurance expenditure. 75% of this is accounted for by patented products. While the US government increasingly exerts pressure on Big Pharma’s “evergreening”, the Swiss authorities are trying to further strengthen the intellectual property rights of Novartis & Co. And if this strategy fails, they try to restrict the room for manoeuvre of low and middle-income countries such as India in curbing abuses, as highlighted in the recently signed free trade agreement. As pharma hub, Switzerland should, instead, finally face up to its political responsibility and, as a Member State to the European Patent Convention, advocate stricter rules on patentability and ensure their enforcement.

More information here or from:

Patrick Durisch, Health Policy Expert, 021 620 03 06, patrick.durisch@publiceye.ch

Oliver Classen, Media Director, 044 277 79 06, oliver.classen@publiceye.ch