6 September 2017 - Government responds to the Productivity Commission Report and the Courts find “Swiss-style” claims not sufficient for a patent term extension.

The Australian Government, in its highly anticipated response to the Productivity Commission’s Report, recommended only a minor change to the legislation relating to patent term extensions (PTEs). Almost simultaneously, in the equally eagerly-awaited decision of the Federal Court in Commissioner of Patents v AbbVie Biotechnology Ltd [2017], it was found that Swiss-style claims do not confer eligibility for a PTE.

Vertex, for example, appears to have recently borne the brunt of this downward pressure in a spectacular failure to reach agreement with the PBAC, the body that recommends new medicines for listing on the PBS. In a controversial decision, for the third time the PBAC refused to list Vertex’ combination cystic fibrosis drug Orkambi (lumacaftor/ivacaftor; understood to have been offered at around $300,000 per patient per year) because, as reported by Vertex’ General Manager Simon Bedson, the company would not agree to the PBAC request for a 90% discount on the price tag. Bedson has called on Greg Hunt, the Minister of Health and the person responsible for PBS expenditure, to step in and to over-rule the PBAC.

Read Lexology article