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.

Filed Under: business models, drugs, health care, healthcare, patents, pharma


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  1. identicon
    Anonymous Coward, 10 Mar 2011 @ 11:12am

    Re:

    Want to improve health in America? Blame the sick.

    I'm not going to apologize for this.

    FUCK YOU.

    I'm one of a legion of people who have genetic conditions that can do NOTHING about them. I'd love nothing more than to not have to worry about finding insurance to cover the $40,000 of medication I'll burn through in a year, and never mind there's only one manufacturer for the drug that keeps me alive.

    My two major genetic defects have no known source and feed into one another in such a way that should the one that actually has a treatment gets out of control, the second untreatable one will kill me.

    I wish to god for a cure that will never ever come because the conditions are rare enough that there's not enough profit in pursuing it despite the research being underwritten by my tax dollars.


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