PolicyBrief
H.R. 890
119th CongressJan 31st 2025
Stopping Pharma’s Ripoffs and Drug Savings For All Act
IN COMMITTEE

This Act aims to lower drug costs by preventing pharmaceutical companies from extending patent monopolies through "patent thickets" and requiring the USPTO to reform its examination practices for drug-related patents.

Patrick Ryan
D

Patrick Ryan

Representative

NY-18

LEGISLATION

Stopping Pharma’s Ripoffs Act Targets Patent 'Evergreening' to Speed Up Generic Drug Access

The 'Stopping Pharma’s Ripoffs and Drug Savings For All Act' takes a direct swing at a legal maneuver called 'patent evergreening.' This is when a drug company stacks multiple patents on a single medication to keep cheaper generic versions off the market for years or even decades. The bill introduces a new legal presumption: if a company has a pile of patents on one drug, all those patents are now assumed to expire on the same day as the very first one. This effectively puts a firm expiration date on a company’s monopoly unless they can prove a new patent is for a truly unique invention.

Closing the Exclusivity Loophole

Under the current system, drug makers often file for new patents on minor tweaks—like changing a pill's coating or the way it's administered—to reset their 20-year clock of market exclusivity. Section 2 of this bill flips the script. In any legal challenge involving a drug or biologic, the law will now assume the owner has 'disclaimed' any extra time on patents that extend past the first one's expiration date. To keep that extra time, the company has to prove by a 'preponderance of the evidence' that the subsequent patents cover 'patentably distinct' inventions. For a patient who relies on a brand-name biologic for an autoimmune condition, this could mean the difference between waiting five years or fifteen years for a more affordable biosimilar to hit the pharmacy shelf.

Cleaning Up the Patent Office

The bill doesn't just change the rules for lawsuits; it goes after the source of the problem at the U.S. Patent and Trademark Office (USPTO). It mandates a comprehensive review of how the office examines drug patents to ensure they aren't accidentally handing out 'double patents' that lack proper expiration disclaimers. Within one year, the USPTO Director must report to Congress on how they’ll tighten up these procedures. For the average person, this is about administrative hygiene—making sure the government isn't rubber-stamping paperwork that ultimately keeps your out-of-pocket costs high.

The Cost of Innovation vs. Competition

While this is a win for generic manufacturers and anyone paying a monthly premium, it creates a steeper hill for major pharmaceutical companies. They can no longer rely on a 'patent thicket' to protect their profits; they will have to prove that every new patent they file represents a genuine breakthrough. There is a risk that this leads to more time spent in courtrooms as companies fight to prove their inventions are 'distinct,' but the bill’s clear standard aims to make those arguments much harder to win. By tying the life of secondary patents to the original, the bill seeks to ensure that once a drug’s initial innovation period is over, the market opens up to the competition that drives prices down.