The Fatal Conceit of Cheap Drugs
The U.S. Supreme Court agreed to hear Hikma v. Amarin to answer a narrow question. It may end up saying far more about how policymakers misunderstand pharmaceutical markets.
On its face, the case is narrow. It asks whether a generic drug manufacturer can face liability for inducing patent infringement based on how it markets a product approved under a so-called “skinny label.” The dispute turns on whether Hikma’s conduct plausibly encouraged physicians to prescribe its generic drug for a patented use.
But the Court’s decision to grant certiorari hints at something broader. It reflects a persistent belief that regulators and courts can engineer complex pharmaceutical markets to deliver lower prices—chiefly by speeding generic entry.
That belief misses the mark. Worse, it risks undermining the innovation that produces new therapies in the first place.