Pharmaceutical Companies, Intellectual Property, and the...

In this case study I was asked six question the first one was,Do pharmaceutical companies have a responsibility to distribute drugs for free or at low cost in developing countries? What are the main arguments for and against such an approach? While this case is literally full of negative aspects, we will only focus on the main points for both arguments. Pharmaceutical companies want to be sure that the products they spend years and millions of dollars to create are not easily reproduced and sold at discount prices. The profits pharmaceuticals make of their patented products are supposed to refinance new research. So taking away their exclusive distribution rights and allowing other manufacturers to just copy the product and sell it at†¦show more content†¦Discounted prices make political, economic, and, most importantly, moral sense. Although ninety-five percent of people living with HIV/AIDS are in developing countries, the impact of this epidemic is global. In South Africa, where one in four adults are living with the disease, HIV/AIDS means almost certain death for those infected. In developed countries however, the introduction of antiretroviral drugs has meant HIV/AIDS is treated as a chronic condition rather than a killer disease. In developing countries like South Africa, the drugs that allow people to live with the disease elsewhere in the world, are simply too expensive for individuals and governments to afford at market price. Drug prices are set by pharmaceutical companies to cover research and development costs. While RD costs clearly need to be covered, markets in developed countries already pay for most RD of new products. Because of this, it makes moral and economical sense to establish a two-tiered pricing system; for RD costs to be paid for by developed countries, allowing significantly reduced p rices to be charged in developing countries. Pharmaceutical companies had been reluctant to provide drugs to developing countries at reduced prices because of concerns around distributing drugs in unregulated and unreliable environments. They argued that this could create new drug-resistantShow MoreRelatedPharmaceutical Companies, Intellectual Property, and the Global Aids Epidemic2557 Words   |  11 PagesIBUS 3312 - International Management Pharmaceutical Companies, Intellectual Property, and the Global AIDS Epidemic Analysis While this case is literally full of negative aspects, we will only focus on the main points for both arguments. Pharmaceutical companies want to be sure that the products they spend years and millions of dollars to create are not easily reproduced and sold at discount prices. The profits pharmaceuticals make of their patented products are supposed to refinanceRead MorePharmaceutical Companies, Intellectual Property935 Words   |  4 PagesCase Study #1 â€Å"Pharmaceutical Companies, Intellectual Property, and the Global AIDS Epidemic† Questions for Review: 1. Do pharmaceutical companies have a responsibility to distribute drugs for free or at low cost in developing countries? What are the main arguments for and against such an approach? What are the advantages and disadvantages of giving drugs for free versus offering them at low no-profit prices? -I don’t necessarily think that they have the â€Å"responsibility† to do so but I thinkRead MorePharmaceutical Companies2392 Words   |  10 Pagesa lot of discussion about pharmaceutical companies, intellectual property, and the global AIDS epidemic. Do pharmaceutical companies have a responsibility to distribute drugs for free or low cost in developing countries? Why is intellectual property such a big deal? 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(Discussion With Reference To Pharmaceutical Industry) Name of Lecturer : Rajendran K S Name of Student : Nilesh Singh DateRead MoreTrips Have Been Adopted with a View to Encourage Fair Competiotion at International Level4181 Words   |  17 PagesMASTER OF BUSINESS ADMINISTRATION ECON 1102 REGULATORY INSTITUTIONS OF THE WORD ECONOMY Trade-Related Intellectual Property Rights (Trips) Have Been Adopted With A View To Encourage Fair Competition At The International Level, But Trips Rules Tilt The Balance In Favour Of Imperfect Competition With Each Country And Exacerbates International Inequalities. (Discussion With Reference To Pharmaceutical Industry) Name of Lecturer : Rajendran K S Name of Student : Nilesh Singh Date