PERA increases costs of cancer treatments, antibiotics, and diagnostic tests

[Wayne, 4-3-24, R Street, “Congress Wants to Revive Patents but May Strangle Innovation and Damage Health Care Access Instead”, , accessed: 7-11-24, AngH]

Expanded Patents, Rising Health Care Costs

In addition to economic and competitive issues, questions of eligibility can also raise important ethical concerns. Ultimately, overly broad patents may reduce access to affordable treatments. Patents on natural products or biological processes essential for drug development create government-protected monopolies that limit the development of alternative or generic versions of drugs, which could hinder patient access to affordable medicines.

Consider some of the potential adverse effects of expanding patent eligibility:

More costly cancer treatments. If patents are granted on isolated natural compounds or proteins involved in cancer pathways, it could limit the development of alternative or generic cancer drugs targeting those same pathways. This could prolong the exclusivity period for expensive branded cancer therapies, making them unaffordable for many patients—especially those without insurance coverage or financial assistance.

Deterred innovation in antibiotics and antimicrobial resistance. Broad patents on naturally occurring antimicrobial compounds or mechanisms of antibiotic resistance could hinder research into new antibiotics or alternative treatments. This could exacerbate the growing public health crisis of antimicrobial resistance by limiting the availability of affordable and effective antibiotic options.

More costly diagnostic tests and personalized medicine. Patents on isolated genes or biomarkers would create monopolies over diagnostic tests and personalized medicine approaches, driving up costs for patients and health care providers. These exciting new avenues for therapies may be delayed by a return to the problematic eligibility standards previously addressed by the courts. This could limit access to affordable and tailored diagnostic tools, hinder the adoption of precision medicine, and lead to suboptimal treatment choices.

These examples illustrate the potential far-reaching consequences of overly broad patent eligibility criteria on drug affordability across various therapeutic areas and with distinct disease populations. Striking the right balance between incentivizing innovation and ensuring reasonable access to essential medical treatments remains a critical challenge in the ongoing debate over patent eligibility reform in the life sciences and biotechnology sectors. Unfortunately, proposed legislative changes opt not to strike that balance—reverting instead to a world characterized by higher costs, increased litigation, and less innovation.