PDA

View Full Version : Drug wars: The US strikes back


SunWuKong
09-11-2003, 11:32 PM
i hate drug companies.

------------------------------------

Drug wars: The US strikes back
By Indrajit Basu

KOLKATA - It is starting to look as if once again US pharmaceutical manufacturers have outmaneuvered developing-world drug makers, despite the agreement last month that will allow poorer nations to import cheap generics to beat major killers such as Acquired Immune Deficiency Syndrome (AIDS) and malaria.

In an agreement which World Trade Organization Director General Supachai Panitchpakdi described as historic, all 146 members of the trade body on August 30 rubber-stamped a deal between the United States and a key group of developing countries – Brazil, India, South Africa and Kenya - to allow poorer nations to import cheap unbranded and off-patent pharmaceuticals. The agreement, for instance, will allow the West African country Burkina Faso, with more than 440,000 of its 11.5 million population living with AIDS/HIV, to import anti-AIDS drugs from India at one-fifth their present import cost.

The US removed its bitter opposition to the agreement after repeating for two years US pharmaceutical industry complaints that generic drug companies in developing countries, such as Brazil and India, could start copying patented medicines - like Viagra - and divert such cheap copies to developed markets like the US and European Union.

However, Indian drug makers are scarcely delighted with the US's changed stance. Even though global organizations, including the Pharmaceutical Research and Manufacturers Association of America, called the compromise "significant, and a bonanza for India and Brazil", the Indians allege that while the US has finally agreed to the settlement, its pharmaceutical majors are increasingly adopting strategies that go against the basic tenet of the WTO: relaxing barriers for free global trade.

"The US may have allowed drug makers in the developing countries to sell generic versions of expensive medicines to poorer nations," said a member of the Indian Pharmaceuticals Alliance, a powerful drug manufacturers' lobby, "but the US market itself is getting increasingly tough as a result of strategies that a few large US drug makers have started adopting lately."

According to the industry, even as Indian generic drug makers are finalizing their strategies to enter the US - the world's biggest pharmaceutical market - in January 2005, major US pharmaceutical companies are converting their patented prescription drugs to over-the-counter (OTC)products, just as their patents expire, as a ploy to give them three years more protection from competition, foreign or otherwise.



more... (http://www.atimes.com/atimes/South_Asia/EI12Df05.html)

AliBabaIncorporated
09-12-2003, 04:56 AM
End the patent system. Insurance companies will fund development of new treatments as a way of keeping their costs down.

Cipherous
09-12-2003, 06:37 AM
End the patent system. Insurance companies will fund development of new treatments as a way of keeping their costs down.

That'd be nice but how would companies make money?

you spend millions of dollars on research just to give the competetion your product?

Hell, I'd just start a company and wait for new treatments from other companies to come out and carbon copy whatever they put out without me paying any of the research that went to it.

I think a viable solution would be to make the government assign a agenda for each university to create new treatments. Granted, the government would have to invest hell of alot more...atleast the money is gonna to be put to use.

VV o n g B a
09-12-2003, 11:50 AM
End the patent system. Insurance companies will fund development of new treatments as a way of keeping their costs down.
do u mean end patents for just drugs or all patents in general? i think abolishing patents outright is a bit overdoing it although i don't know enuf to suggest an alternative. it could work for drug companies as you said, but what about things like computer graphics hardware? if there aren't patents, then who except the gov't would fund the research? hollywood and gamers would drive the current market, but i wonder if they would be willing to put money into a research fund. it's hard to imagine enuf ppl willing to do this to drive innovation at its current rate.

AliBabaIncorporated
09-12-2003, 07:11 PM
maybe we should merge this with the IP thread in rant. Anyway, to summarize, I don't know how to solve the "free rider" problems. I'm not an economist or a businessman. However, there's someone, probably lots of someones, out there who do have ideas on how to solve it. And the only thing stopping them from implementing their ideas is that the barriers to entry in the market are kept artificially high by the patent system --- i.e. government force.

The government assigning research funds through taxation is one possible idea; as a libertarian, I'm pretty sure private individuals could come up with a better solution, though.

SunWuKong
09-12-2003, 09:01 PM
yes, let's keep the discussion to drug companies. discussions about IP laws can go here (http://forums.yellowworld.org/showthread.php?t=9368).

John0101
10-04-2003, 12:20 AM
The problem isn't about patents. If poorer countries manufactor their own drugs they can export those drugs for a cheaper price in the world market. Driving down the profits of the drug firms. Even the U.S. export these drugs at a lower price whats stopping those countries from just reselling it in the world market?