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Are Drug Patent Laws Fair?

Wed, 08/02/2000 - 11:00pm — Karen Stevenson
Description: 

The National Institute for Health Care Management (NIHCM) has released a report investigating the changes in patent laws over the years which have given protection to drug manufacturers. The study reports that drug patent ran for only about 8 years in the early 1980's but now average 13-15 years. This means that the length of time between the development of new drugs and the time when those drugs become available as generic products has significantly increased, increasing costs to consumers who might benefit from the less expensive cost of generic drugs. The report also noted that only about 36% of new drug patent applications in the last 10 years have been for products which have never been available on the market, and the rest were for new dosages or combinations of exisiting drug compounds. The group concluded that patent protection laws have not had the effect of increasing innovation and spending on new research as much as they have protected the profits of the drug industry.

The Pharmaceutical Research and Manufacturers of American (PhRMA), which represents drug manufacturers, criticized the report, and pointed out that the HIHCM gets some funding from managed care companies, who are trying to reduce drug costs for themselves. They said that a recent study by key researchers at Tufts Center for the Study of Drug Development found that the average patent life for a prescription medicine approved from 1993 to 1995 is only 11.2 years, compared to 18.5 years for most other products.

The National Institute for Health Care Management (NIHCM) has released a report investigating the changes in patent laws over the years which have given protection to drug manufacturers. The study reports that drug patent ran for only about 8 years in the early 1980's but now average 13-15 years. This means that the length of time between the development of new drugs and the time when those drugs become available as generic products has significantly increased, increasing costs to consumers who might benefit from the less expensive cost of generic drugs. The report also noted that only about 36% of new drug patent applications in the last 10 years have been for products which have never been available on the market, and the rest were for new dosages or combinations of exisiting drug compounds. The group concluded that patent protection laws have not had the effect of increasing innovation and spending on new research as much as they have protected the profits of the drug industry.

The Pharmaceutical Research and Manufacturers of American (PhRMA), which represents drug manufacturers, criticized the report, and pointed out that the HIHCM gets some funding from managed care companies, who are trying to reduce drug costs for themselves. They said that a recent study by key researchers at Tufts Center for the Study of Drug Development found that the average patent life for a prescription medicine approved from 1993 to 1995 is only 11.2 years, compared to 18.5 years for most other products.