| In The News #10 >> | ||
>> TITLE Patents Protect Drugs--Sort of Lead Story-Dateline: >> SUMMARY The United States and several impoverished nations reached an agreement allowing a relaxation of patent protection on certain drugs. Pharmaceutical companies originally opposed the deal on grounds that it would make the protected drugs subject to resale back to the higher priced Western markets. The agreement covers compulsorily licensed drugs used to treat all diseases and allows generic equivalents to be manufactured and distributed at affordable prices to poor nations. Drug makers were given assurances that the extended privileges would not be abused and the generic equivalents sold to developed markets. The overall agreement still needs approval from the 146 member countries of the World Trade Organization before actually going into effect. These concessions on pharmaceuticals are seen as the break in an impasse on other trade issues. >> Talking it Over and Thinking it Through
>> Thinking About the Future What about the government’s involvement? It might be feasible for the government to intervene in this industry, fund research, and then make these products available to the general public at reasonable costs. One of the reasons often given for the current high costs is the legal liability stemming from products that have negative side effects. Perhaps if the government controlled this industry it could pass legislation granting itself immunity from tort litigation and reduce costs in this manner. The topic of additional government involvement in pharmaceuticals is periodically broached, but not in this magnitude.
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