gp patent drugs

7/30/2019 GP Patent Drugs

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S

Patent Drugs andHealthcare

Cass, Clarissa, Charlene, Hui Fen


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Patent Drugs

Patent

The right to ownership, whereby a person / organizationdiscovers a lesser known concept or invents something new

and holds sole intellectual ownership rights to that particularidea.

Pharmaceutical Patents:

protect manufacturers of prescription drugs, prohibitingothers from producing a drug during the length of its patent

protection

length: 15-20 years (US: 20)


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Background of the Pharmaceutical

Industry

Develops produces and markets drugs licensed for use as

medication.

Subject to variety of laws and regulations surrounding patents,

testing and safety of drugs.

However, ultimately, they are profit making companies. (in other

words, they are commercialized)

Multi million dollar industry

In 2006, global spending on drugs topped US$643billion

Pharmaceutical industry is the most profitable industry in USA,

with returns of 17%.

Top names include Abbott, Pfizer and GlaxoSmithKline.


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Commercialisation of the

Pharmaceutical Industry

Commercialization

o Money first, not patients.

Unique nature of drugs- they are essential for health.

o Companies can afford to price their drugs at significantlyhigher prices.

Prices are artificially high.

o The poor have no access to affordable drugs.

Drug companies also link up with doctors to promote their drugs inan effort to sell more drugs.

o Doctors get an incentive to prescribe drugs from said company.

Over prescription of drugs when not necessary.


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Commercialization of the


Firms tend to fund research into modification of exiting drugs , instead ofinnovataion of new low-cost drugs

E.g. Abbott Labs produced a supposedly supposed drug Zemplar as

they were about to lose a patent for Calcijex. However, FDA reported

that the differences between these drugs were not enough to prove

its superiorityo Cost of modifying/imitating existing drugs cost less than developing

new drugs (R&D)

o "New" drugs are priced even higher than original, rendering them

unaffordable by the poor

o Potentially life-saving drugs are not produced due to the low profit

in 2004, John Hopkins researchers discovered that an off-the-

shelf compound could arrest liver cancer growth in rats, and

would only cost 70 cents a day, but no pharmaceutical company

showed interest in developing it for human use


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Commercialization of


Drug research motivated by potential profits, rather than

provision of accessible healthcare for all

o Results that do not favour firm's product are not

publishedo Industry-supported research favours company's product

over generic products, even if latter is more effective,

safer, or cheaper

o Patients pay unnecessarily exorbitant prices for drugswhen there are potential cheaper, equally effective

alternatives


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Advantages of Pharmaceutical

Patents

Prospect of earning huge profits provides incentive for

pharmaceutical companies to invest large amounts of resources

into scientific research to develop new drugs.

Initial investment in pharmaceutical research amd development(R&D) is costly --> strong patent protection is an important step to

provide the opportunity to recoup investments and make good profits

According to the 2006 Economic Report of the US President,

Intellectual property protection helps create an incentive structurethat encourages research and development, which in turn leads to

increased innovation. Increased innovation generates greater rates of

economic growth.


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Disadvantages of Pharmaceutical

Patents

Patents results in high prices.

Those in need of the drug may not get it as it is too costly for

them to afford

o Companies producing patented drug are likely to set high prices to makeprofits

Companies do not like to produce cheap effective and safe

drugs because it does not bring high profits

o In 2004 for example Johns Hopkins researchers discovered that an off-the-

shelf compound could arrest liver cancer growth in rats. It would cost 70

cents a day, but no drug company showed interest in developing the drug for

human use.


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Healthcare Insurance

A form of risk management primarily used

to hedge against the risk of a contingent,

uncertain loss

- pools resources of a large group to pay

for losses of a small group- needs a large base number of members


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Is it justified for big insurancecompanies to deny individuals

insurance or demand heftypremiums based on an

individuals background

history?


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Healthcare Insurance Companies

Medical check-up before application

Pre-existing medical conditions: deny insurance, exclude

certain sections or charge higher premiums

Prevent "free-ridership" Drives up cost for everyone

Collapse of the system

Insurance companies ultimately profit-making companies


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Human Rights

Health care as a basic right

View of human life as "sacred"

Not merely to those who can afford it

12.6 million non-elderly adults (36 %) discriminated against in

the past three years: ineligible for coverage because of a pre-

existing condition, charged them a higher premium, or

refused to cover their condition

37 million Americans carry no health insurance


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Unethical gaming by insurance

companies

Insurers game the system in unethical ways by going

beyond preventing free ridership

Make use of technicalities to avoid payouts

Blue cross of California - asks physicians to look out

for conditions to cancel new patients medical

coverage


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US Health Reform

Individual mandate

2014 onwards, people with pre existing

medical conditions cannot be turned down forhealth insurance coverage, charged a higher

premium or sold a policy that limits health

services because of a pre-existing condition


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Conclusion

While it may not be fully justified, it is the only

possible way for insurance to work

Regulations to prevent insurance companiesfrom using technicalities to game the

system


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References

http://www.bbc.co.uk/news/business-16913816

http://www.nytimes.com/2012/03/07/business/global/indias-supreme-court-to-hear-long-simmering-dispute-on-drug-patents.html?pagewanted=all

http://www.innovation.org/documents/File/Pharmaceutical_Patents.pdf

http://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.

pdf

http://dinorcia.net/pdfs/DiNorciaCommercializationUSPharmaceuticalBusiness2011W

d.pdf

http://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8

CDC23
http://www.innovation.org/documents/File/Pharmaceutical_Patents.pdfhttp://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.pdfhttp://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.pdfhttp://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8CDC23http://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8CDC23http://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8CDC23http://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8CDC23http://www.youtube.com/watch?v=bmqB7JzZePQ&feature=BFa&list=PL99815CB46F8CDC23http://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.pdfhttp://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.pdfhttp://www.law.umaryland.edu/marshall/crsreports/crsdocuments/rl3075601102005.pdfhttp://www.innovation.org/documents/File/Pharmaceutical_Patents.pdfhttp://www.innovation.org/documents/File/Pharmaceutical_Patents.pdf

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