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How Big Pharma secures drug monopolies

Posted by Bobby Brown on December 21, 2023 - 10:38pm

So the pattern system has been a great driver of medical inventions. We've seen some terrific discoveries and inventions in the medical space, but weve as we've evolved in the system, i think we're starting to see as a lawyer who's practiced in this area. We're starting to see a lot of strategies that are played by pharmaceutical companies in order to. 


Maintain their monopolistic hold or their exclusivity hold over a particular product and what they do is they ratchet up a number of patents around a particular product in order to prevent competition from getting in. And we all know that once you have competition prices drive down. There's a number of studies that show prices can drop well below more than 50 percent if you get competition in the marketplace sooner. So the idea that companies want to do is to basically prevent that competition from coming up in earlier and also. 


Then the other argument of that are they then really inventing new things because what they do is they hold onto the marketplace as long as they can on the existing product. They extend the franchise out by using patents, sometimes with the potential of holding the market for 40 years unless litigated, and we all know that litigation doesn't solve all the problems, and we've seen that in a number of the top-selling drugs in the United States. We've done studies as an organization where we have seen price hikes between 2012 and 2016 on the top 12 selling drugs in the United States of 68 percent. And we've seen in parallel to that the number of patents that have been stacked up on those products even after the products being approved, even after the in initial pattern has expired, which is a 20 -year term, and so they're just pushing it out further and further and further so that they can delay the competition getting in. 


And that all leads to market power and it all leads to the ability to increase prices at will. I believe that there are differences between if you look at a pharmaceutical company, the scientists who work there, the people who work on the development of drugs. Their primary purpose is to help people. I believe I've generally believed that I believe the conversations I've had with people from that sector. They believe that if they bring a new product to market and it save someone's life, or it can actually make somebody Healthy they really do believe that unfortunately there's a business side to it as well. And so what you have is for every scientist you have probably two lawyers who are watching over them saying Oka, how can we extract a pattern out of this and to make sure that nobody else gets in there? And so what we have is, then you have the particularly the pharmaceutical market. There's an argument that it's become overly financialized in terms of its investors who drive what companies do rather than Maybe the initially intended print purpose was to deliver health products and to help make people not have to become ill and stay alive, and I think a lot of some of that has got lost in the process. As. Pharmaceutical complies now really start to look at their bottom line and their shareholders and what the investors want rather than what their original purpose was was to help. People become healthier and I think that the bargain of that has tilted more towards the financialization of things rather than thinking about health first. So Ima comprises as lawyers and scientists who've come from the private practice background. We've all worked in industry. I myself have been a solicitor in the United Kingdom working for the commercial side of intellectual property for over ten years and we've taken that knowledge to apply it in a public interest way whereby we look at. 


Particularly the drug in the pharmaceutical industry, how do pharmaceutical corporations strategize their patent filings in order to get the maximum protection? And so what we do is we look at a product. It could even be still in development, and we'll do what we call the due diligence and the analysis of all their patent filing. So, for example, if it's a product that revolves around the small chemical compound, we'll identify what that chemical structure is. And then what we'll do is we do patent searches. There are various databases that you can use. We put in keywords, we will use compound searches and then we'll find out what it is that the company has filed for. And then we track how many other patents that the company is adding on in the lifetime of the product. And that way we build up a sense of what is their entire portfolio around that particular product. And that then gives us a sense of what their strategy is. 


What potentially is the new version of the product that they may be lining up so that what they do is typically products these days in the pharmaceutical market, they're on the market for five years and then they'll switch it out to the next version of the product, and these patterns usually tell you what's coming down the line. 


We use that essentially then to make decisions and often at the behest of organizations such as Doctor Without Borders who want to get access to these products. But they say the patents are a barrier, the prices are too high and then we'll investigate the science behind them as we're doing these analysis and what we realize is many times that the science behind it is not new. And then at that point we decide whether we want to challenge those patterns in order to remove the barriers so that competition get in earlier and by doing that then lower we get generic competition in earlier if we're successful and prize has dropped significantly and we've achieved that in various ways. For example, in India we've been very successful with the HIV drug collect which was. 


A product owned by Abbott Laboratoriess now ABI and we were able to challenge the key patents on their drug and such that Abbot eventually withdrew all its patent applications and generic companies could continue to supply this particular product at a much lower price, not only to Indian patients but also many patients around the world and particularly in Africa. So we were able to keep that market at a much accessible way for people living with HIV AIDS and that for  us has been one of the greatest successes.