Strategies Employed For the Extension of Patent Term-Market Exclusivity For Pharmaceutical Products

In the pharmaceutical industry, a lot of research,to drug products, medical devices, food additives,
time, manpower and money goes into R&D forand color additives are eligible for patent extension.
the development of novel drugs and bringing themThe maximum of patent term that may be restored
into market. If the innovations are not protectedis five years.
with a proper fence of integrated technologies then3) Interim term extensions
generic companies would exploit the invention withoutIf the term of the patent expires before the
giving much benefit to the innovator company.certificate of extension is given to the application,
Hence, it is mandatory for the innovator company tothen the Director extends the term of the patent up
apply for patent protection at least in thoseto one year under Interim term extension. This
geographical areas where the innovator companyextension is only possible if the director feels that the
wishes to market their product, retain monopoly andpatent should be considered for extension.
refrain their competitors entering into the market tillApart from patent term extensions, market
the patent term for the innovation expires. Thisexclusivities can be gained separately. Exclusivity
article discusses various strategies employed by thegives FDA approved drugs market exclusivity which
innovator companies in US to extend the life of thedoes not allow the generic competitors to enter into
patent and gaining market exclusivity for thethe market till the exclusivity is valid.
pharmaceutical product.Following are the market exclusivities offered by
It is estimated that around 7 to 12 years ofFDA:
extensive research is involved to bring the innovation1) New Chemical Entity (NCE) exclusivity
into a shape, which can be marketed. Apart fromNCE exclusivity is awarded for 5 years to NDA
product development there are hassles regardingapplicant who receives the first approval for a drug
approval of the pharmaceutical product by respectiveproduct. No salt or ester of the novel chemical entity
drug authorities. Considering the patent term or theshould have ever received FDA approval. During this
protection offered by the patent to be 20 years5-year period, the FDA is stopped from accepting an
from the filing date of the patent, effectively aAbbreviated New Drug Application (ANDA) for
period of 8 to 10 years would be available with thereview. The only exception is that if a patent is also
innovator company to get benefits of theirlisted on the NDA product subject to NCE exclusivity,
developed product. Innovator companies executethe FDA may accept an ANDA after 4 of the 5-year
various strategies to extend the life of the patent asperiod has expired, if the ANDA contains a Paragraph
well as the product.IV certification challenging the patent. NCE exclusivity
On grant of patent for the invented drug and regularcan be considered as a total exclusivity as generic
payment of maintenance fees gives the patentcompetitors cannot submit or approve their product
holder monopoly over the drug and rights to excludewhile the exclusivity is valid.
other from manufacturing, using and selling the2) New Use / New Clinical Studies exclusivity
patented invention for a stipulated time. On expirationThis kind of exclusivity is granted for a period of
of the patent, generic competitors would exploit thethree years to NDA holder who applies for new use
market, which would lead to reduction of marketof approved drug. New clinical studies are to be
share and revenue loss for the innovator company.carried out to get approval from FDA for use of the
Hence, additional patents are filed in order to fenceapproved drug for its use for new indication.
the invented drug or product. These additionalExclusivity can be granted for new dosage form
patents for the extension of invention / product(Sustained release dosage form, Controlled release
protection could comprise of method of preparation,dosage form), a new use or indication, a new salt or
new formulation, method of preparation ofester of a drug product, change in concentration,
formulation, drug derivatives and its metabolites,novel drug delivery etc. The 3-year exclusivity may
polymorphs, stereo-selective enantiomers etc.block FDA approval of a generic version until after
Additional patents filed could also coverthe exclusivity expires. It is also possible that the
improvements to the invention or new uses, whichFDA approves generic version if approval does not
are not mentioned in the initial granted patent.infringe on the protected change.
We will discuss in brief various strategies employed3) Orphan Drug exclusivity
by the innovator companies in US to extend the lifeSeven-year orphan drug exclusivity is granted to
of the patent and reap maximum fruits for anpromote research and marketing for the
extended period of time.development of drugs to treat rare diseases. US FDA
The Hatch-Waxman Act provides a system whereinhad defined Orphan drug / rare diseases as those
the New Drug Applicant (NDA) holder could apply todiseases affecting 200,000 or fewer patients in the
have extension of its patent. The extension wasUS. This exclusivity period can block the FDA from
meant to compensate the applicant for a portion ofapproving competing generics of a drug product for
any time lost after the issuance of a patent duringthe orphan use. Applicant may request orphan drug
which the testing and approval phases of the FDA'sdesignation for a previously unapproved drug or for
regulatory review process commenced.an already marketed drug. One or more applicants
Following are the paths by which patent term can bemay receive orphan drug status for the same drug
extended:for the same orphan disease.
1) Patent term adjustments - delay during patent4) Pediatric exclusivity
prosecutionPediatric exclusivity gives an incremental 6 months
The patent term adjustment is provided in case ofexclusivity to an existing marketing exclusivity that
United States Patent and Trademark Office (USPTO)has been earlier granted or to a patent protection.
fails to act to patent application from patent filing orThis type of exclusivity is granted to clinical studies
fail to reply to applicant's appeal in a stipulated time.of drugs for pediatric population. This type of
The purpose of the patent term adjustmentexclusivity ensures an incentive for an NDA applicant
provision was to guarantee that patent applicantsfor the clinical studies carried out specifically for
would still have a patent term of at least seventeenpediatric patients. Products with no patent life or
years from grant under the twenty-year patent termexclusivity remaining cannot qualify for pediatric
system.exclusivity.
2) Patent extensions - delays due to regulatoryHence, it is seen that various methods are adopted
approvalby the innovator companies to extend the term of
USPTO can restore the term of a patent that is losttheir patent to extend their monopoly in the filed of
due to delays during regulatory approval by Federalpharmaceuticals.
Food and Drug Administration (FDA). Patents relating