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AbbVie announced it has settled litigation with generic manufacturers in a way that effectively keeps competition for its blockbuster immunology drug Rinvoq off the market until 2037. Let that sink in: patients, payers, and the healthcare system will be forced to pay monopoly prices for another 12 years—not because of scientific innovation, but because of legal maneuvering.
The Problem Isn’t Innovation—It’s Exploitation
Pharma companies argue that extended exclusivity is necessary to fund research and development. Fair enough—for a reasonable period. But Rinvoq was approved in 2019. Stretching protection until 2037 is not about recouping R&D; it’s about protecting profits. This is “evergreening,” plain and simple: using the legal system to delay generic entry and extract billions more from patients and insurers.
The Real Cost
Who pays the price? Patients are struggling with out-of-pocket costs. Employers are facing higher insurance premiums. Taxpayers are footing the bill through Medicare and Medicaid. Every year of delay costs the system billions, while AbbVie continues to post record earnings.
And let’s be clear—settling litigation in a way that both sides know locks out competition is not a neutral act. It’s a deliberate strategy to undermine the spirit of generic drug law, which was designed to strike a balance between innovation and access.
Why This Should Be Illegal
Congress passed the Hatch-Waxman Act to encourage generic competition, not to create a playground for patent attorneys. These kinds of “settlements” mock the intent of the law. They are effectively pay-for-delay agreements by another name. The Federal Trade Commission (FTC) has already flagged such tactics as anticompetitive; however, loopholes and lax enforcement continue to allow pharmaceutical giants to evade them.
What Needs to Change
- Stricter oversight of litigation settlements that delay competition.
- Closing legal loopholes that allow patent thickets and “evergreening.”
- Automatic reviews by the FTC or DOJ whenever brand and generic companies strike deals that extend exclusivity.
Pharma has every right to profit from innovation—but not indefinitely, and not by exploiting loopholes in the system. AbbVie’s Rinvoq settlement is just the latest reminder that reform isn’t optional. It’s urgent.
Until lawmakers act, patients will continue to pay the price while Wall Street cheers.
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