Pharamaceutical Industry Patent Assessment Essay

1080 words - 5 pages

Pharmaceutical Industry Patent Assessment
Patents are a key element of Intellectual Property and provide a competitive edge to the pharmaceutical industry. The exclusive property rights provided by patents restrict competition in production and sales of medicine allowing companies to charge higher prices without concern for competition. The global standard of twenty years from the application date protecting the company’s significant research and testing investment. This is standard is important because it can take 10-15 years to develop a single product. Pharmaceutical industry patents also have tremendous impact on health care policies due to their influence on the cost of medicine. A new medication can cost in the billions of dollars requiring pharmaceutical companies to incur significant risk. The patent mitigates that risk encouraging medical companies to pursue new, innovation medicines that are essential to medical advancements.
The pharmaceutical industry grew rapidly from the early 90’s until 2008. Blockbuster drug sales produced large revenues for their companies leading this period of growth. However, events in recent history have begun to impact the industry and the future of pharmaceutical patents. The 2008 financial crisis significantly impacted growth as demand of medicine decreased. This economic recession, combined with multiple key blockbuster drug patents expiring in the last 4 years, changed and continues to impact the future of the pharmaceutical industry and new drug innovation. Approximately 81 branded drugs expired 2010-2013 ( ) including 30 blockbuster drugs each previously generating over a billion in sales annually. This recent loss of pharmaceutical sales is impacting the drug company’s profit margins. The patent loss is also opening the door to generic drugs from competitors. This increasing competition will drive down the price of these specific drugs further impacting funding for future innovation and research. The pharmaceutical companies are facing a dilemma in filling this revenue void forcing them to create new strategies for innovation while competing in the growing generics market. Generics market growth is keyed by national healthcare cost containment. Governments everywhere would like to see use of a cheaper product over their higher original drug product. The market for generic drugs has shown strong growth between 2008 and 2013 generating over $100 billion in sales annually since 2008 ( ).
Recent health care reform has also had a dramatic impact on the health industry. The Affordable Care Act (ACA) became law in 2010 with intent to increase health care protection for consumers. The ACA reforms does impact pharmaceutical companies with a deal reached to reduce the benefits gap in Medicare Part D plans. Key pharmaceutical company impacts include
an annual fee to help fund the ACA, regulation of generic drugs, and an exclusive 12 year timeframe for brand name drug sales. A...

Find Another Essay On Pharamaceutical Industry Patent Assessment

Impact of Trade Liberalization on Developing Countries

5990 words - 24 pages long-run the developing countries will benefit from having strong patent and copyright laws, it is not even possible to make this assessment without first knowing what their cost is likely to be. At present, the evidence on the size of these costs is extremely limited.The World Bank recently attempted to quantify some of the costs of TRIPS. The first column in Table 5 shows its estimates of the net change in patent rents that several developed

Frito Lay New Product Essay

1181 words - 5 pages the Snack industry and the Pharma industry that you studied in the Rogaine case.The Pharma industry approaches new product introduction by doing R&D for new products and line extensions that must be submitted for regulatory approvals from the FDA this is a lengthy process that follows the acquisition of patents that expire after a given amount of time, during the patent protected period firms enjoy little or no competition. After the patent

Battery Nanotechnology

3326 words - 13 pages target was to make bunch invention and make it inexpensive. Fordism was popular character in the past days. In Fordism, everything was standardised. The works, manufacturing process, all are standardised. The problems faced with Fordism are so uninteresting; the workers have to do the same job each day. Salary increase happened with the Fordism manufacturing model. Small amount industry was out of scale in the Fordism. These reasons give way to a more

US ASEAN Business Council

8561 words - 34 pages pursuing expanded trade with the United States, but maintain extensive and trade-distorting barriers to leading U.S. medicines.Intellectual Property Rights. Adequate and effective protection of intellectual property rights, particularly patents, trademarks, and proprietary data, remains the foundation for continued U.S. leadership in the research-based pharmaceutical industry. Absent strong intellectual property protection, the U.S. research-based

Thomas Edison

3759 words - 15 pages Thomas Edison Thomas Alva Edison - born February 11, 1847, Milan, Ohio, U.S. d. Oct. 18, 1931, West Orange, N.J. American inventor who, singly or jointly, held a world record 1,093 patents. In addition, he created the world's first industrial research laboratory. Edison was the quintessential American inventor in the era of Yankee ingenuity. He began his career in 1863, in the adolescence of the telegraph industry, when virtually

Commercialization of Photochromic Dyes and Products

1714 words - 7 pages Commercialization of Photochromic Dyes and Products Background While most people, including this author, hold quite optimistic views of the photochromic industry, very little commercial success has been realized. In Professor Giacomo Ciamician’s famous paper on photochemistry of the future, he predicted that photochromic clothing would be popular. It turns out that he was right. His paper was written in 1912 and photochromic clothing was

Siemens Group: Analysis of Technology Management Using Relevant Theories/Models & Identification of Current Issues

8917 words - 36 pages identification and assessment process166.Non-linear innovation process (Kline model)187.Current and prospective innovation rate198.3i Program (Funnel model for idea generation)209.Customer connection (Chasm theory)2210.New combinations (Schumpeter model)2311.Tolerance for doubt and failure24IV.CURRENT ISSUES AND RECOMMENDATIONS251.Innovator's dilemma (mobile phone business case)252.Possible negative impacts from M&A on technological synergy263

merck company

4630 words - 19 pages vs. acute diseaseDriving out competitors with lower pricesPotential higher drug revenues after a competitor's patent expiredPenetration of vaccines and biologics for emerging international markets (Gardasil)Diversification into biologics, diabetes & infectious market segmentsConstant growth of pharmaceutical & health care industry by 10%Educate staff to promote loyalty through relationships from distribution channelsProduct diversification

merck

4630 words - 19 pages vs. acute diseaseDriving out competitors with lower pricesPotential higher drug revenues after a competitor's patent expiredPenetration of vaccines and biologics for emerging international markets (Gardasil)Diversification into biologics, diabetes & infectious market segmentsConstant growth of pharmaceutical & health care industry by 10%Educate staff to promote loyalty through relationships from distribution channelsProduct diversification

Reflections on “BioPharm-Seltek”

2043 words - 9 pages the negotiation. SUMMARY THE PREPARATION OF OUR GROUP (BUYER) (1) SELF-ASSESSMENT (BUYER) • Buy from Seltek: up to $40 million • Build (BATNA) $37.5 million (Cost: $25 million for 12 months (Loss of $12 million), Location: favorable 10 miles from US headquarters’ operation ($500,000) 90days. • Reservation point: $37.5 million • Target point: $ 16 million • Tax: $ 200,000 • Patent: Buy or Not (2) COUNTERPARTY ASSESSMENT BATNA 1. Keeping

The Genetically Modified Foods Controversy

1519 words - 6 pages company producing the product. The consultation process itself is only a “risk assessment based on information provided” by the company in question. Products are evaluated on a case by case basis and only the end product is considered in the risk assessment, not the actual alteration process itself (Chetty 270). But despite these somewhat fallible safety procedures, the U.S. public continues to voice little to no opposition to genetically modified

Similar Essays

The Requirements And Specifications For Product Patents

1715 words - 7 pages A patent is an exclusive statutory right given to the owner to exploit an invention for up to 20 years or 25 years in the case of pharmaceutical patents. For the duration of the period, the owner has the legal right to prevent any third party from producing the patented product or to sue those who infringe his/her exclusive right. In other works, a third party can produce the patented product or use the patented process without permission from

Beyond The Win Win! The Case Of Blackberry Grand Canyon University Essay

2331 words - 10 pages focus on creating value for society through three possible ways. First, by innovating products and markets, redefining the concept of productivity in their value chains, and establishing supportive industry groups in their operational locales. Several companies such as Wal_mart, GE, Nestle, Johnson & Johnson, and Nestle have adopted intiatives addressing these concerns. Kramer and Porter argue that that adoption of CSV could reshape capitalism and

Canada's Regulators And Genetically Modified Foods: The Public's Protection?

1740 words - 7 pages environmental policies and programs for the federal government" (Canada, Mandate Vision and Mission).The origin of the genetically modified organisms is relevant to this argument. President of the International Centre for Technology Assessment Andrew Kimbrell documents the history of the litigious battle for the right to patent a living organism. The history starts in a laboratory in India that belonged to General Electric (GE) and with an Indian

Brand Name Versus Generics Essay

2597 words - 10 pages using an experimental drug in an urgent situation, such as cancer, that does not allow time for thorough FDA review. (FDA, 2010) The third type is a treatment investigational drug application; its purpose is for the submission of experimental drugs that have potential in previous clinical assessment for severe life –threatening situations. (FDA, 2010) An investigational new drug application is required to contain information in three broadened