Pharmaceutical Pricing The New Drug War - 2164 Words

Executive Summary The report talks about the news article â€Å"Pharmaceutical Pricing: The New Drug War† and how the concept of â€Å"Cooperation, Collision and Competition† Intellectual Property are related to it. The report also discusses the news article in the light of some theoretical background and talks about Trans Pacific Partnership (TPP) deal, which will have some significant impact to certain industries e.g. Pharmaceutical industry, of the countries that will become a part of this deal. Introduction The international trade relationship among countries is complex which combined both challenges and opportunities. International trade agreements between countries might bring some opportunities to some developing countries in some†¦show more content†¦Pharmaceutical industry. A negative aspect of TPP is that it will not encourage competition and positive aspect is that it encourages Intellectual Property protection. Explanation Pharmaceuticals are beneficial to form a public good as they not only prevent epidemics but also keep people healthy in a society. According to The Economist’s report (2014) about Pharmaceutical pricing, Pharmaceutical firms sue those who try to manufacture and sell patented drugs for a song to protect the intellectual property that drugs represent. Due to this, pharmaceutical companies are accused of disregarding the sufferings of the poor and exploiting the sick. These pharmaceutical companies are in business to make a profit hence arguments over drugs pricing are always on the rise. The report mentions activists who are suing to block the patenting in India of a new Hepatitis C drug that has just been consented by American regulators so that the drug can be copied and sold at a cheap price by other companies (Economist, 2014). The intellectual property is essential in pharmaceutical industry, which is usually embodied in laws regarding patents, copyrights and trademarks etc. It motivates the sustainable development of the innovation of the pharmaceutical companies (Richard Rozek 1990). A deal was signed in 1994, in which governments enable a generic drug maker to produce a patented medicine under the Trade Related Aspects of Intellectual Property