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Backgrounder/memo to CEO

March 24, 2016 | Author: | Posted in public administration, social sciences

Patent Laws

Patent laws are created to protect the intellectual property rights of scientists and to motivate investors to produce rare drugs . Under the intellectual property laws in drugs , investors and investors could market and profit from their products for 18 years without the fear of losing sales from the threat of generic drugs

Effects of Drug Patenting

Patenting drugs creates an opportunity for brands to monopolize the market , thus , gaining complete control over the pricing of their product . It allows maximum profits for brands within the specific period allowed [banner_entry_middle]

by patent laws , in this case 18 years

During the specific period allowed by patent laws , it is illegal for generic brands to infringe the rights of the patented drugs by marketing their products . This reduces competitive marketing , making it more difficult for the generics to penetrate the market . Naturally because of this reduced competition , prices are raised and the availability of drugs is decreased . This created the motion that patent laws should be limited to allow generic brands to enter the market more freely

Loopholes in Patenting

After a patent expires , the generic brands can market their product without the restraint or fear from any legal implications that could be brought to them by the patented brand . The entrance of generic brands could reduce the sales of branded drugs by about 80 percent (Herper . To maximize profits and at the same time reduce the threat imposed by generic drugs on their sales as well as legally , the inevitable expiration of patent is maneuvered by branded companies within the bounds of laws . The branded drugs could enter into private financial deals , usually by bribing drug companies who want to enter the market with their generic versions . Another way of maneuvering the laws include attaching riders on to some pieces of legislation in the congress ‘ to extend the patent of the brand (Kugler

Some companies perform slight changes in the formulation of their drugs to make a new and improved ‘ version of their product . As a result when the drug patent expires , the consumers would not want to choose the generic versions , believing it less potent

This had been the case of Eli Lilly and Co . as they fought their way to win the case against generics maker Zenith Pharmaceuticals . The last claimed that Lilly ‘s patent on Zyprexa is invalid because it was too similar to its earlier patent . They argued that Lilly misled the institutions on the significance of their tests . Lilly on the other hand argues that Zyprexa is a more superior drug compared to its former and is worthy of its patent . However , according to Lilly , they had no plans of bribing their generic rival out of the case

Another way of maneuvering is when drug companies continuously patent upon patent to extend their monopoly over the drug and challenge the generics . This works to the great advantage of the brands and otherwise to the generics because when a branded product challenges a generic in court… [banner_entry_footer]

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