Pharmaceutical Pricing : The New Drug War

2164 Words Jun 18th, 2015 9 Pages
Executive Summary
The report talks about the news article “Pharmaceutical Pricing: The New Drug War” and how the concept of “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.

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
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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 Rights. Presently Trans-Pacific Partnership (TPP), a proposed trade deal between countries in Asia and the Americas is underway. The purpose of TPP is to reduce tariffs and promote economic development between countries (Caulderwood, K. 2014).
Multinational pharmaceutical companies, which are based in the United States, lobby for TPP provisions like those in the Australia-US Free Trade Agreement Free trade agreement, thereby reducing government’s regulatory control of drugs, so drugs can be equitable accessed. The protection of TPP intellectual property monopoly privileges is advocated. However,
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