PHM-Exch> AstraZeneca's cancer drug patent rejected (2)

[Claudio Schuftan]

From: Sam Lanfranco <Lanfran at yorku.ca>


To an economist these struggles leave one question unanswered.

The purpose of patents is to reward innovation, when innovation
actually occurs, with that reward in place for a finite period of
time. It is not a reward for "me too" copycat drugs seeking protected
market share for drugs developed by others, nor is it protection for
ever.

Since drug companies know that, what is not clear is why they don't
face up to the fact that at a point in time the drug will move from a
monopoly product to a product with limited (oligopoly) competition?

Market economics suggests that they either prepare to participate in
the competitive stage, with or with out mandatory licensing, or exit
production, leaving manufacturing to others. Nothing in even the
wildest vision of a free enterprise system bestows product protection
in perpetuity

Sam Lanfranco
York University

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"It is a disgrace to be rich and honoured
 in an unjust state" -Confucius
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