Four Decades After Hatch-Waxman: Legal Loopholes Maintain High Drug Prices



In the four decades since Congress passed the Hatch-Waxman Act aiming to enhance the availability of generic drugs, various strategies employed by the pharmaceutical industry have kept prices of several life-saving drugs high. According to Law360, legal experts point to tactics such as patent thickets, “evergreening,” and pay-for-delay agreements that have effectively blocked competition. These approaches have allowed the industry to maintain elevated prices for specialty drugs despite the legislative intent to promote affordability. The pharmaceutical industry, on the other hand, attributes these high costs to other factors, suggesting that the blame is not solely on their practices.