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« KSR Int'l Co. v. Teleflex Inc. (2007) | Main | A Modest Proposal Regarding Drug Pricing in Developing Countries »

May 01, 2007

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Comments

So, the Brazilians will get cheaper medicine, and the drug companies, in order to maintain their profits, will likely charge other countries more.

If more and more countries take this approach, where is the incentive for the drug companies to spend hundreds of millions of dollars developing a drug? This seems likely to help Brazil get cheaper medicine now, but they are hurting the possible development of future, life saving drugs.

Brad:

It comes down to an allocation of costs. Since Western drug companies developed drugs for many years when these countries did not permit drug patenting, there should be little economic effects on the balance of recouping development costs. The fact is that these countries will one way or the other get the drugs at reduced costs, so why not adopt a regime based on facial or actual fairness, thereby avoiding the adverse political consequences associated with thye current political rhetoric? It would be pointless for Western governments to promote a system (WTO) purportedly to increase patent protection around the world that results in less patent protection than existed before the WTO/GATT/TRIPS regime.

Thanks for the comment.

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