{"id":3886,"date":"2021-04-06T06:03:09","date_gmt":"2021-04-06T06:03:09","guid":{"rendered":"https:\/\/swaritadvisors.com\/blog\/?p=3886"},"modified":"2021-04-06T06:03:12","modified_gmt":"2021-04-06T06:03:12","slug":"how-patents-increased-the-price-of-drugs","status":"publish","type":"post","link":"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/","title":{"rendered":"How Patents Increased the Price Of Drugs?"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Innovation\ngives life to the whole industry of pharmaceutical because it\u2019s mainly a\nknowledge-driven field. Without inventors go-getting for innovation, people\nwould never have access to standard pharmaceutical drugs. But, these common\ndrugs sell for a much lesser price, which is beneficial for the poor people,\nmight not do a lot of good for huge companies. Moreover, the cost of innovation\nand research &amp; development in the area of pharmaceutical industries is huge\nand quite random. Patents help huge pharmaceutical companies legally safeguard\ntheir Intellectual Property Right (IPR).<\/p>\n\n\n\n<p>&nbsp;Separate drug companies Patent have numerous features of drugs that don&#8217;t need a lot of innovations. These efforts hide their competition from creating universal drugs, which makes things challenging for general people. Hence, people need to strike an elusive balance between patenting to make more money and patenting for safety. In this blog, we discuss how Patents increased the price of drugs.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-light-blue ez-toc-container-direction\">\n<p class=\"ez-toc-title\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3b1b2f463b5\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3b1b2f463b5\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#How_Patent_Play_a_Significant_Role_in_the_Price_of_Drugs\" title=\"How\nPatent Play a Significant Role in the Price of Drugs?\">How\nPatent Play a Significant Role in the Price of Drugs?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#Discussing_the_Policy_of_Drug\" title=\"Discussing\nthe Policy of Drug\">Discussing\nthe Policy of Drug<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#Manufacturers_of_Generic_Drug\" title=\"Manufacturers\nof Generic Drug\">Manufacturers\nof Generic Drug<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#How_do_the_Price_of_Drugs_Increase\" title=\"How\ndo the Price of Drugs Increase?\">How\ndo the Price of Drugs Increase?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#Are_the_price_of_drugs_or_medicines_are_expensive_in_India\" title=\"Are\nthe price of drugs or medicines are expensive in India?\">Are\nthe price of drugs or medicines are expensive in India?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#How_to_Resolve_the_Problem_of_Rising_Drug_Prices\" title=\"How\nto Resolve the Problem of Rising Drug Prices?\">How\nto Resolve the Problem of Rising Drug Prices?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/swaritadvisors.com\/blog\/how-patents-increased-the-price-of-drugs\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Patent_Play_a_Significant_Role_in_the_Price_of_Drugs\"><\/span><strong>How\nPatent Play a Significant Role in the Price of Drugs?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The price of drugs is at the front of discussion among patients, prescribers, <strong>pharmaceuticals<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Pharmaceutical_industry\" class=\"text-primary\"><strong>[1]<\/strong><\/a><\/sup>, policymakers, advocacy groups, etc. There is one important factor \u2013 in driving the price of drugs is the availability of competing products. Certain competing products, such as biosimilar version or original versions of the approved <a href=\"https:\/\/swaritadvisors.com\/drug-license\" class=\"text-primary\"><strong>drugs<\/strong><\/a>, are not immediately available as an outcome of the market individualities granted to the innovator company by the Government in the form of special marketing rights or Patent rights. The reasoning for granting such market snootiness is to incentivize innovation and advancement of better, new and safer recommendation drugs.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Discussing_the_Policy_of_Drug\"><\/span><strong>Discussing\nthe Policy of Drug<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Rising\nconcerns that people are not getting true access to drugs and that the\nhealth-related industry is not economically accessible are developing. All\naround the globe, medicines are getting costlier, which makes things very hard\nfor middle-class people. The healthcare system in India took up 1% of its GDP,\nup until a few years ago, where the globe&#8217;s average was 6%. Hence, it is clear\nthat we need to advance a better understanding of what policies affect the\nprice of drugs so that we may regulate them and prevent inflation.<\/p>\n\n\n\n<p>In\ninnovative sectors, Patents are very useful, as they give companies incentives\nto invest in research and development. But, the reports tell that only 5% of\nthe drugs manufactured in India are protected by Patent. For example, India has\nover 30 lakhs of people who have cancer. But, in the previous few years, only\nseven new drugs for cancer come out into the market, whereas around the globe,\nthere have been over 50 new therapies. Researches done by MIT show that out of\n184 drugs permitted by the FDA to be sold in India, over 50% faced delays due\nto marketing approval. Sometimes, such delays lasted up to 5 years, meaning\nthat they found their way into India much later.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Manufacturers_of_Generic_Drug\"><\/span><strong>Manufacturers\nof Generic Drug<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Once\nthe marketing approval received, these new drugs will be manufactured and sell\nas many generic drugs by Indian manufacturers within one year. Studies tell\nthat this represents how much people have lost trust in the Patent scheme. If\nthese researches are truly correct, then it spells bad news for both patients\nand pharmaceutical companies. The World Health Organization (WHO) has lately\nannounced that the world would quickly run short of antibiotics due to the\ngrowth of drug-resistant infections. They have faith that the speed of\nevolution of such drug-resistant microbes would be faster than the speed of\nmaking new drugs. Most of the huge drug manufacturer companies in the world are\nclosing down their antibiotic research, opting to concentrate on drugs for\ndiseases. This occurs because particular drugs are more profitable than\nessential medication such as antivirals and antibiotics.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_do_the_Price_of_Drugs_Increase\"><\/span><strong>How\ndo the Price of Drugs Increase?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>As per the researches done by the WHO (World Health Organization), over 50% of the final market price of drugs is due to factors external to its process of manufacturing. Most of the regulation techniques for the price of drugs are useless as their mechanisms are not associated with the factors that result in the price rise. Moreover, poor execution of these methods due to inadequacy and a negligent attitude form the government outcomes in further surges. The strategy of China to counter the surge in the price of drugs that have <a href=\"https:\/\/swaritadvisors.com\/patent-registration\" class=\"text-primary\"><strong>Patent Registration<\/strong><\/a> is an interesting one that earns mention here. Recently, China cut patented medicines costs by 70% when it comes under the government insurance regime. But, they did so without interfering with the process of Patent Registration. Hence, this aided make the drugs inexpensive to patients while also ensuring a reliable revenue stream for the pharmaceutical companies.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Are_the_price_of_drugs_or_medicines_are_expensive_in_India\"><\/span><strong>Are\nthe price of drugs or medicines are expensive in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Bloomberg\nResearch shows that the price of drugs per monthly unit in India for diseases\nlike hepatitis, diabetes, and asthma were 2%, 4%, and 3%, respectively, when\nrelating to the US prices. Hence, people in India pay very less for their drugs\nas compared to the US, Brazil, and China. But, inexpensive drugs come at the\ncost of time. As these drugs take a longer time to be available in the Indian\nmarket. The extreme delay in obtainability and feeble incentives for innovation\namongst Indian pharmaceuticals is a problem that we need to look at. To raise\nthe pharma industry even further, the Government must build an ecosystem that\nencourages and promoted medical innovation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Resolve_the_Problem_of_Rising_Drug_Prices\"><\/span><strong>How\nto Resolve the Problem of Rising Drug Prices?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul><li>Remove bad Patents efficiently to make sure that\nonly innovation is encouraged and not greed;<\/li><li>Bring an improved structure to the governing\nbody to ensure that the examiners of Patent don\u2019t get overloaded;<\/li><li>Remove inacceptable Patents to finish the\ncontrol and permit free-market competition;<\/li><li>Make sure that Patents don&#8217;t create problems for\nbiosimilar competition after their expiry.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\nbasis of the Patent system should be to strike a balance between the public&#8217;s\ninterest and pharmaceutical industries that encourage innovation. Extending\nPatent protection by covering off rights to treatment ways, active use of\ningredient and drug molecules limit people\u2019s access to drugs at more reasonable\nprices.<\/p>\n\n\n\n<p>The Patent gets expired due to other minor Patents that cover every feature of the medicine. But the expiration of a Patent License doesn&#8217;t always ensure lesser prices. It&#8217;s because generic firms abstain from entering huge numbers or very rapidly so that they can get higher profits. Therefore, it&#8217;s clear that the high price of drugs is not entirely due to the Indian Patent System. But instead, due to the mixture of aspects which we fight to improve drug affordability and availability.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/swaritadvisors.com\/blog\/types-of-intellectual-property-rights\/\">What are the Types of Intellectual Property Rights?\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Innovation gives life to the whole industry of pharmaceutical because it\u2019s mainly a knowledge-driven field. Without inventors go-getting for innovation, people would never have access to standard pharmaceutical drugs. But, these common drugs sell for a much lesser price, which is beneficial for the poor people, might not do a lot of good for huge [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":3892,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[55],"tags":[564],"acf":[],"_links":{"self":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3886"}],"collection":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/comments?post=3886"}],"version-history":[{"count":10,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3886\/revisions"}],"predecessor-version":[{"id":3898,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/posts\/3886\/revisions\/3898"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media\/3892"}],"wp:attachment":[{"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/media?parent=3886"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/categories?post=3886"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/swaritadvisors.com\/blog\/wp-json\/wp\/v2\/tags?post=3886"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}