In a heated Senate Judiciary Committee hearing, the drug industry's leading lobbying group faced intense scrutiny on Tuesday as senators explored whether the misuse of the patent system is to blame for the exorbitant prices of prescription drugs in the United States.

The patent system is designed to reward innovation by granting drug manufacturers exclusive rights to sell new medications for a specified period, usually lasting 20 years. During this time, generic versions of the drug are prohibited, severely limiting competition. Senators from both sides of the aisle accused drug companies of exploiting the system for their own gain.

Senator John Cornyn of Texas, an advocate for the patent system, expressed his frustration with its abuse, stating, "I'm a big believer in our patent system, and I believe in the exclusivity that is provided to people who discover new life-saving drugs. But at the same time, I'm angry when I look at the abuse of the patent system."

Cornyn highlighted the practice of "evergreening," where drugmakers make minor modifications to a drug or its delivery device to extend the patent. He noted that companies can file up to 160 patents for a single drug, hindering generic competition. Senator Peter Welch of Vermont revealed that Novo Nordisk currently holds 25 patents for Ozempic, with only 4 related to the drug itself and the rest linked to the injectable pen used for administering the medication.

While making tweaks to drugs or their delivery devices is not illegal, Professor Arti Rai from Duke University School of Law confirmed this practice to lawmakers. Despite this, the federal government has recently challenged hundreds of patent listings, alleging their intention to obstruct the entry of lower-priced drugs into the market.

During the hearing, Jocelyn Ulrich, Vice President of Policy and Research at the Pharmaceutical Research and Manufacturers of America (PhRMA), the industry's trade group, asserted that they do not support anti-competitive behavior. Ulrich defended the current patent system, stating that it has adequate checks and balances in place. This claim was met with skepticism from Senator Lindsey Graham of South Carolina, who remarked, "You think it's working? Yeah, well, I don't."

Committee Chair Dick Durbin of Illinois focused on Eli Lilly's diabetes drug, Humalog, as a prime example. Despite being on the market for over 20 years, Eli Lilly has successfully extended the drug's patent repeatedly, preventing generic versions from entering the market until recently. Durbin highlighted that the list price of Humalog in the US is approximately $330 per vial, a significant increase from the $20 when it was initially approved under the same formulation.

Similarly, Senator Jon Ossoff of Georgia highlighted the soaring prices of inhalers, noting that the active ingredients have remained largely unchanged over the past three decades. However, extended patents have limited competition, resulting in high prices for consumers.

Senator Welch summed up the issue by emphasizing, "The bottom line here is the cost of health care in this country is killing folks." The committee hearing shed light on the growing concern over how the misuse of the patent system contributes to inflated drug prices, putting a spotlight on the need for action to address this issue that impacts the accessibility and affordability of healthcare for Americans.