Drug Firms Freaking Out Over Expiring Patents
from the live-by-the-patent... dept
Glyn Moody points us to a discussion about how the big pharma firms are freaking out because their key patents are expiring, and they’ve failed to develop any new patentable drugs in a while. This is leading the usual patent supporters to worry and fret. Of course, the whole thing is backwards. As Moody points out, expiring patents should be a cause for celebration, not dismay. It means the public is getting access to all sorts of important medicines at much more reasonable prices. That’s good news.
The real issue here is that for years patents massively distorted the healthcare market. It hasn’t been about keeping people healthy at all. It’s been about finding patentable drugs to extract monopoly rents (often at the expense of actually keeping people healthy). Perhaps, if we can get past this silly and short-sighted focus on patentable medicine as being the key component of healthcare, we can start seeing smarter companies develop smarter business models that actually align interests: firms that recognize there’s tremendous value in actually keeping people healthy, rather than trying to sell them a tiny pill.
If you start looking at the economic research behind healthcare, you begin to realize that the economic incentives around healthcare are totally screwed up. The reports have shown that keeping people healthy for longer contributes billions, if not trillions to the economy. If firms can’t figure out how to profit from keeping people healthy, they’re not paying attention. But that’s never been the focus of our healthcare policy, and it’s a shame. If today’s drug companies are felled by their overreliance on patents, perhaps we can finally move on to rethinking healthcare towards making people healthy and improving the economy at the same time… rather than the current structure that appears to do neither of those things all too often.