Purchase of Drug Patents in India – A Complete Guide

Purchase of Drug Patents
Karan Singh
| Updated: May 27, 2021 | Category: Patent

In India, many pharmaceutical companies spend an enormous amount of their capital in research for new drugs and diversity of grouping, so safeguarding of Patent is a must. Patent protection encourages R&D (Research and Development), as it ensures that pharmaceutical companies have their safety of IP (Intellectual Property). But safeguarding the best interest of the pharmaceutical entities and their economic protection promotes the improvement of new drug Patents in India. However, a question arises that how does a drug Patent work and how pharmaceutical entities purchase of drug Patents in India? In this article, we will know how the Indian drug Patent system works.

Why do Pharmaceutical Entities Require Patent Protection?

Pharmaceutical entities spend lots of money researching for the outcome and desire for new drugs that can aid in saving lives. Though, if they don’t have a drug Patent for their products, then other entities have the opportunity to improve the same drug and sell it. As such companies didn’t spend money on researching part on how to improve that specific drug; the manufacturing cost is less for them.

Hence, such companies make some profits even by selling the medicine at a lower price. When two drugs that do a similar thing come to the market at various cost, the one that has a lower price will be sold more in the market. Hence, the entity that manufactured the drugs finishes up by running at a loss because it has a higher price.

But, if they acquire Patent Registration for the drugs they advanced, then other pharmaceutical entities cannot sell their drugs. For that reason, they will be the only company in the market for a time. The length of the Patent permits them to recover the price undergo by them for the research objective. Other entities can make a common medicine that does a similar thing and also aids in manufacturing the drug more sensible. This is the primary reason that pharmaceutical entities require Patent safety.

Demand of Purchase of Drug Patents by the Pharmaceutical Companies or Entities

The demand for the Purchase of Drug Patents by the Pharmaceutical Companies is mentioned below:

  1. A pharmaceutical drug[1] takes ten to fifteen years for promoting and develop.
  2. The number of drug years gets lost in consent, marketing, and testing of the drugs. Researches have shown that a Patent of a drug valid for twenty years, while the valuable presence of a license is for around 11.5 years.
  3. Hence, pharmaceutical entities have to improve their research price within these eleven years to operate a cost-effective business.
  4. Protection of a Patent also makes technical details concerning the new drugs open to the public domain. Therefore, if not for Patent safety, then the manufacturers of drugs can lose their market distinctness.
  5. A similar study represents that it hardly takes around 800 million dollars to develop a new drug.
  6. To ensure that even lower-income people also get the right to use such drugs, the Government of Indian has permitted common medicine/drugs to be sold. After the Patent expiry, general medicine or drug manufacturers purchase the Patents and manufacture versions of the similar medication at a lower price.

Different Patents Categories for Purchase of Drug Patents

Following are some various categories of Patents for purchase of Drug Patents:

Categories for Purchase of Drug Patents
  1. Technology Patents: It is used to protect the technology related to the solubility, taste masking, and stabilisation of the Patent.
  2. Product Patents: It can be granted for an active formulation, component, isomers, or even to the drug as a complete, as the product is original or distinct.
  3. Synergistic Patents: Such Patents refers to the combination of drugs that aids in spreading and improving the drug effect. Such types of Patents help to safeguard the new variety of different drugs.
  4. Biotechnology Patents: Such types of patents revolve around drugs that use live creatures and any biological resources.
  5. Composition Patents: The primary objective of this Patent is to safeguard specific doses, formulas of tablets & drugs, and different medicines combinations. These Patents claims to cover active fillers, lubricants, ingredients, and carriers.
  6. Polymorph Patents: It is a mixture of crystal structure & material form of any present compound. It aids in scaling the reduction of any impurities found in the drugs. This Patent also aids in safeguarding the discoveries of compounds that boost the efficacy of a drug or medicine.

Purchase of Drug Patents by the Pharmaceutical Entities

Whenever a moderate or highly popular drug losses its Patent safety, standard competition takes over the marketplace. The Parent entity loses a broad asset as most of the market will assemble towards the lower-cost generic drug. In these cases, the small entities wait for the opportunities to make money.

Patent Laws has given an enhancement to drug manufacturing company who doesn’t do R&D of their own. Such entities wait for Patents expiration and then speed up to purchase of Drug Licenses. After the purchase of drug Patents, they raise the price of the drug or medicine, as patented medicines have no price tags.

The reason for no fixed cost is that they didn’t spend their capital on R&D (Research and Development). Subsequently, they invest in the purchase of drug Patents and not in the R&D of drugs. This has led to a rise in Patent marketing in which licences are sold and brought by the common person who is looking for monetary benefit.

While the primary objective of any business in India is to make some money but when involved in the health-related industry ethics. The most vital thing is that the Government can encourage a balanced environment in such cases. Although pharmaceutical entities deserve more assistance for innovating new drugs, regulation must be made to safeguard a monopoly in the marketplace.

Conclusion

A pharmaceutical entity spends lots of money researching the outcome and desire for new drugs or medicines that can save many lives. When two drugs do similar things come to the market at the various price, the one that has a lower cost will be sold more in the market.

Hence, the company that manufactured the drug finished up by operating at a loss due to its higher price or rates. After the purchase of drug Patents, they raise the medicine or drug price, as patented medicines have no price tags.

Read our article:Filing a Provisional Patent Specification – An Overview

Spread the love
Karan Singh

A legal writing enthusiast, a wanderer, and a zealous reader. After gaining a lot of knowledge about the diverse legal topics and developing research skills, Karan joined the league of legal content writers to deliver quality-rich blogs.

docsbizkit
 

Related Articles

Best Tips for Filing of Provisional Patent in India
| Date: Apr 23, 2021 | Category: Patent

Best Tips for Filing of Provisional Patent in India

Intellectual property in the patent form is protected in India and is given to a person who registers his patent under the Indian Patent Act, 1970[1]. The application for patent...

Read More
Patent Application
| Date: May 29, 2021 | Category: Patent

All You Should Know Before Filing a Patent Application

In today's economy, IPR or Intellectual Property Rights has become an unavoidable tool. Following the Indian Government scheme called “Atma Nirbhar Bharat Scheme," several entities have looked at the innovation,...

Read More
All You Need to Know About Patent Royalty Agreement
| Date: Sep 16, 2021 | Category: Patent

All You Need to Know About Patent Royalty Agreement

A Patent Royalty Agreement is an agreement that outlines the terms in which a licensee can use a patent product of a licensor. This agreement is used when a licensor...

Read More

ARTICLES

Hi! My name is Akanksha! Let's talk.