Boosting Pharmaceutical Innovation in the Post-TRIPS Era

Boosting Pharmaceutical Innovation in the Post-TRIPS Era

Real-Life Lessons for the Developing World

Burcu Kilic

This timely book investigates the concept of innovation and illustrates the crucial role that patent strategies play within processes of pharmaceutical innovation. Drawing on extensive country and company case studies, it identifies the key issues relevant to the revival of local pharmaceutical industries. Based on an understanding of the post-TRIPS environment and case studies of national innovation strategies, it specifically addresses an important question – to what extent can lessons from national experiences be transferred to current policy developments for innovation in the pharmaceutical industry in a developing country context?

Chapter 6: A real life company case study: Teva Pharmaceuticals Ltd and its distinctive trajectories

Burcu Kilic

Subjects: law - academic, biotechnology and pharmaceutical law, intellectual property law

Extract

Following the enactment of the Agreement on Trade Related Aspects of Intellectual Property (TRIPS), the evidence presented from the experiences of local pharmaceutical industries in developing countries (hereinafter referred as local pharmaceutical industry) strongly suggests that there has been a dramatic change in the business climate. Historically, the traditional business model of the local pharmaceutical industry was based on reverse engineering. The process of globalisation and the emergence of a rules-based multilateral trading system, however, require a new, feasible model, which takes account of the particular circumstances of the global marketplace. As the current patent regime brings new challenges for developing countries, this raises a need for the local pharmaceutical industries to reappraise their traditional business strategy. Moreover, a move towards a new business strategy, one that includes the built in elements of research and development (R & D) and drug development, is widely seen as necessary. However, the lack of (or very limited) expertise, in managing innovation and in driving and sustaining market growth, poses a major challenge for the local pharmaceutical industry in the post-TRIPS era. Specifically, in the light of previous discussions, the question arises whether the local pharmaceutical industry should be acting as collaborative partners for multinationals, or whether these local industries should create their own competitive market? This question has yet to be resolved. Hence, there is currently a great deal of uncertainty regarding the current and future business prospects of the local pharmaceutical industry.

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