[Ip-health] New UNCTAD-ICTSD Policy Brief: Changes in Global Pharma & Implications for IP

Daniella Allam dallam at ictsd.ch
Wed Aug 3 01:36:19 PDT 2011

 *The Structural Changes in the Global Pharmaceutical Marketplace and Their
Possible Implications for Intellectual Property*

by Brian Tempest
Partner, Hale & Tempest ; Former CEO, Ranbaxy

Joint UNCTAD-ICTSD Policy Brief
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 A number of changes have taken place in the global pharmaceutical
marketplace over the last decade that are putting pressure on the large
research and development (R&D)-based pharmaceutical transnational
corporations (TNCs) to change the way they do business. The old R&D model of
creating “blockbuster” new chemical entities (NCEs) and selling them at high
prices around the globe is in crisis. TNCs have begun to adapt by giving
greater focus to developing country markets, acquiring generic drug
manufacturers and undertaking R&D in emerging economies such as China and

This policy brief<http://ictsd.org/downloads/2011/07/tempest_policy_brief.pdf>
 by Dr. Brian Tempest, former CEO of Ranbaxy, the leading Indian generic
manufacturer, examines how some of these changes interface with intellectual
property (IP) policies, and suggests what that may mean for IP issues and
pharmaceuticals in the years ahead. In this regard, the author posits that
developing country governments are more likely to issue compulsory licenses in
the future if large (R&D)-based TNCs keep the prices of new drugs highly
inflated and beyond the purchasing power of developing country consumers. He
further argues that if the large R&D-based TNCs do not change, they will
probably be acquired by those companies that have changed and already moved
into the emerging world with tiered pricing. Finally, the author considers
that large R&D-based TNCs will have to come to accept an open, flexible
approach to access to medicines in the developing world.

Download the brief

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