4 ms·
The word "patent" always sounds better than "guaranteed monopoly", yet there is no fundamental difference. With respect to drug patents, I think the French syst
by athenot 11y ago
The word "patent" always sounds better than "guaranteed monopoly", yet there is no fundamental difference. With respect to drug patents, I think the French system has a good system:
- Option 1: you sell the drug at whatever market price you want but no patent will be granted and anyone is free to copy the drug.
- Option 2: you receive a patent protection for you drug but you must defend the price at which you want to sell in a bargaining round with the government. In essence, it's a compromise where you as a drug manufacturer can recoup your costs, and where the people don't overly get taken advantage of in life-or-death situations.
Disclaimer: my Dad worked in a major French pharma company.
- pkaye 11y agoWhich option do the drug manufacturers typically take? The second option would require a government that actually cares more about society in general vs special interests. How has it worked out in practice?
- ddingus 11y agoSeconded. I am very interested in learning more about this question.
- refurb 11y agoI'm in the biotech business and I've never heard of the first option in France at all. That said, individual countries regulations can be quite complex, so it might be true. As for the second option, France, Germany and the UK all have a system where an independent body evaluates a drug in order to determine it's value. They do this by comparing the new drug against what's currently available and provide a rating. In France it's an ASMR rating, but I think that's changing. Once the drug receives a rating (Important, moderate, mild and insufficient improvement over current agents, ASMR I-IV), the company and gov't enter negotiations over the price.[1] [1] http://www.has-sante.fr/portail/upload/docs/application/pdf/2014-03/pricing_reimbursement_of_drugs_and_hta_policies_in_france.pdf http://www.has-sante.fr/portail/upload/docs/application/pdf/...
- caseysoftware 11y agoBut just like in venture capital, the gains from the winners are used to wipe out all the losers and provide overall gains. While we'd love to be able to say "pill X costs $Y to make, therefore you should charge $Y+10%" there are many more variables in play that aren't directly connected to the manufacture of the pill.. or even the R&D that went into it.