Episode Details
Back to EpisodesThe Evergreen Scam: How One Law Became a $167B Exploit
Season 1
Episode 187
Published 2 months, 2 weeks ago
Description
In 1984, Congress tried to fix drug pricing by balancing brand-name protections with generic access. Instead, they accidentally created the perfect loophole. Pharmaceutical companies discovered 'evergreening'—filing endless patents on tiny modifications to existing drugs—turning 20-year monopolies into decades-long cash grabs. Three drugs alone (Humira, Eliquis, Enbrel) cost Americans an extra $167 billion.
Key timestamps:
0:00 - The Hatch-Waxman Act: The deal that seemed reasonable
3:45 - How generics went from 19% to 90% of the market
7:20 - Evergreening explained: Patents on formulations, delivery devices, dosages—anything but innovation
12:15 - Three drugs, $167 billion: The scale of the exploit
16:00 - Why fixing it is harder than you'd think
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Sources & further reading:
• I-MAK — [Overpatented, Overpriced (2022 and 2025 data briefs)](: https://www.i-mak.org/overpatented/
• DrugPatentWatch — [The $400B Patent Trap: How Hatch-Waxman Built the System Big Pharma Learned to Game](: https://www.drugpatentwatch.com/blog/the-grand-bargain-re-examined-a-40-year-historical-analysis-of-u-s-pharmaceutical-patent-extensions/
• Ryan Knox & Gregory Curfman — [The Humira Patent Thicket, the Noerr-Pennington Doctrine, and Antitrust's Patent Problem (SSRN)](: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=4215822
• STAT News — [How pharma companies use 'innovation' to abuse patent system](: https://www.statnews.com/2026/05/26/humira-patents-abbvie-innovation-pharma-monopoly-excerpt/
• BioPharma Dive — [Two decades and $200 billion: AbbVie's Humira monopoly nears its end](: https://www.biopharmadive.com/news/humira-abbvie-biosimilar-competition-monopoly/620516/
• Federal Trade Commission — [FTC Amicus Brief Challenges Abuse of FDA Orange Book Listing Procedures](: https://www.ftc.gov/news-events/news/press-releases/2022/11/ftc-amicus-brief-challenges-abuse-fda-orange-book-listing-procedures-block-drug-competition
• Senator Warren's office — [Push for pharma companies to pull over 100 sham patent listings (June 2024)](: https://www.warren.senate.gov/newsroom/press-releases/warren-jayapal-push-eight-pharma-companies-to-pull-over-100-sham-patent-listings-opening-opportunity-for-more-competition-lower-drug-prices
• Columbia Law Review — [Five Actions to Stop Citizen Petition Abuse](: https://www.columbialawreview.org/content/five-actions-to-stop-citizen-petition-abuse-2/
• IPWatchdog — [Abuse of Orange Book Listings by Branded Pharmaceutical Companies](: https://ipwatchdog.com/2018/04/04/abuse-orange-book-listings/id=95555/
• ScienceDirect — [Development of the generic drug industry in the US after the Hatch-Waxman Act of 1984](: https://www.sciencedirect.com/science/article/pii/S2211383513000762
• ScienceDirect — [Evergreening, Patent Challenges, and Effective Market Life in Pharmaceuticals](: https://www.sciencedirect.com/science/article/abs/pii/S0167629612000057
• Supreme Court of India — Novartis AG v. Union of India (2013), analysis via [Legal Service India](: https://www.legalserviceindia.com/Legal-Articles/novartis-ag-v-union-of-india-section-3d-patent-evergreening-judgment/
• NCBI/PMC — [To patent or not to patent? The case of Novartis' cancer drug Glivec in India](: https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3884017/
• PLOS ONE — [Is Patent Evergreening Restricting Access to Medicine/Device Combination Products?](: https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0148939
• FDA — [40th Anniversary of the Generic Drug Approval Pathway](: https://www.fda.gov/drugs/cder-conversations/40th-anniversary-generic-drug-approval-pathway
• JD Supra — [7th Circuit Hears Oral Arguments in Humira Patent Thicket Antitrust Case](: https://www.jdsupra.com/legalnews/7th-circuit-hears-oral-arguments-in-9057194
• …and 1 more in the episode research notes
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