{"id":20565,"date":"2020-11-28T12:51:49","date_gmt":"2020-11-28T07:21:49","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=20565"},"modified":"2020-11-28T12:51:51","modified_gmt":"2020-11-28T07:21:51","slug":"purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/","title":{"rendered":"Purchase of Drug Patents by the Pharmaceutical Companies in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">The pharmaceutical company in India\nspends a huge amount of their capital in researching for new drugs and variety\nof groupings so protection of patent is a must.&nbsp;Protection&nbsp;of patent promotes\nResearch and Development (R&amp;D), as it makes sure that pharmaceutical companies\nhave their own protection of&nbsp;intellectual property.&nbsp;By protecting the\nbest interests of the pharmaceutical companies and their economic safety, it encourages\nthe development of new drug patents in India. The question arises that how does\nthe drug patent work and how a pharmaceutical companies purchase of drug\npatents in India? In this blog we are going to look at how the Indian drug\npatent system works.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Why_do_Pharmaceutical_Companies_need_Patent_Protection\" >Why do Pharmaceutical Companies need&nbsp;Patent\nProtection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Need_of_Purchase_of_Drug_Patents_by_the_Pharmaceutical_Companies\" >Need of Purchase of Drug Patents by the\nPharmaceutical Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Category_of_Patents_for_Purchase_of_Drug_Patents\" >Category of Patents for Purchase of Drug Patents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Definition_of_Branded_Drugs\" >Definition of Branded Drugs<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Purchase_of_Drug_Patents_by_the_Pharmaceutical_Companies\" >Purchase of Drug Patents by the Pharmaceutical\nCompanies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/corpbiz.io\/learning\/purchase-of-drug-patents-by-the-pharmaceutical-companies-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_do_Pharmaceutical_Companies_need_Patent_Protection\"><\/span>Why do Pharmaceutical Companies need&nbsp;Patent\nProtection?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pharmaceutical companies spend\nbillions of money researching for the consequence and want for new drugs that\ncan help in saving lives. Though, if they do not have a drug patent for their\nproducts then other companies have the chance to develop the same drug and sell\nit in the market. As these pharmaceutical companies did not spend money on\nresearching on how to develop that particular drug, the cost of manufacturing\nis less for them. <\/p>\n\n\n\n<p>So, such <strong>pharmaceutical companies<\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/List_of_pharmaceutical_companies\"><strong>[1]<\/strong><\/a><\/sup> make profit even by selling the medicine at a lower price. When two drugs that does the same thing comes to the market at different cost, the one that has a lower price will be sold more in the market. Therefore, the company that manufactured the drug ends up running at a loss because it has a higher price.\u00a0<\/p>\n\n\n\n<p>However, if they have <a href=\"https:\/\/corpbiz.io\/patent-registration\"><strong>Patent Registration<\/strong><\/a> for the drugs they developed then other pharmaceutical companies cannot sell their drugs. For that reason, they will be the only company in the market for a time being. The duration of the patent allows them to recover the cost endured by them for research purpose. Other companies can make a generic medicine that does the same thing and also helps in making the drug more reasonable. This is the reason that pharmaceutical companies need\u00a0Patent Protection.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Need_of_Purchase_of_Drug_Patents_by_the_Pharmaceutical_Companies\"><\/span>Need of Purchase of Drug Patents by the\nPharmaceutical Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p><strong>The need of Purchase of Drugs Patents by the Pharmaceutical Companies are stated below-<\/strong><\/p>\n\n\n\n<ul><li>A pharmaceutical drug takes around 10 to 15\nyears for development and marketing.&nbsp;<\/li><li>Number of years of the drug gets lost in testing,\napproval, and marketing of the drugs. Studies have shown that a drug patent\nlasts for 20 years while the useful existence of a license is for about 11.5\nyears.&nbsp;<\/li><li>Therefore, pharmaceutical companies have to recover\ntheir research cost within these 11 years to run a cost-effective\nbusiness.&nbsp;<\/li><li>The same study shows that it roughly takes around\n$800 million for development of any new drug.&nbsp;<\/li><li>Patent protection also makes technical\ninformation related to the new drugs open to the public domain. Consequently if\nnot for patent protection then the manufacturers can lose their market uniqueness.<\/li><li>To make sure that even middle class &amp; lower income\npeople also gets right to use these drugs; governments has allowed generic\ndrugs or medicines to be sold. After expiry of patent, generic drug\nmanufacturers buy the patents accordingly and manufacture versions of the same\nmedication at lower costs.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Where is the Office of Generic Drugs?<\/h3>\n\n\n\n<p>The Office of Generic Drugs is the\nauthority that regulates and makes sure that the public is provided with safe\ngeneric drugs working from America. They put all generic medicines through a controlled\nand regulatory procedure to make certain that Americans consume premium generic\ndrugs. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Category_of_Patents_for_Purchase_of_Drug_Patents\"><\/span>Category of Patents for Purchase of Drug Patents<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The Category of Patents for Purchase of Drug Patents is as follows-<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter\"><img decoding=\"async\" width=\"1024\" height=\"512\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Category-of-Patents-for-Purchase-of-Drug-Patents-1024x512.png\" alt=\"Category of Patents for Purchase of Drug Patents\" class=\"wp-image-20576\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Category-of-Patents-for-Purchase-of-Drug-Patents-1024x512.png 1024w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Category-of-Patents-for-Purchase-of-Drug-Patents-300x150.png 300w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Category-of-Patents-for-Purchase-of-Drug-Patents-768x384.png 768w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/11\/Category-of-Patents-for-Purchase-of-Drug-Patents.png 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><\/div>\n\n\n\n<h3 class=\"wp-block-heading\">Product Patent <\/h3>\n\n\n\n<p>Such patent can be granted for an\nactive component, isomers, formulation, or even to the drug as a whole, as the\nproduct is unique.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Composition Patents<\/h3>\n\n\n\n<p>This type patents aims to protect\nspecific doses, formulas of drugs &amp; tablets and combinations of different\nmedicines. Composition Patents claims to cover active ingredients, fillers,\ncarriers and lubricants.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Synergistic Patents <\/h3>\n\n\n\n<p>Medical synergy refers to\ncombination of drugs helps in expanding and enhancing the effect of one drug.\nThese type of patents help protect new combinations of several drugs.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Technology Patents<\/h3>\n\n\n\n<p>This type of patents state to safeguard\nthe technology concerned in solubility, stabilization and taste masking of\npatent.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Polymorph Patents <\/h3>\n\n\n\n<p>Polymorphs are a mixture of crystal\nstructures and material form of any existing compound. It helps in mounting the\nsteadiness or reduction of any impurities present within any drugs. Polymorphs\npatent helps in protecting the discoveries of compounds which enhances the\nefficacy of a medicine.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Biotechnology patents <\/h3>\n\n\n\n<p>These types of patent spin around\ndrugs that use live creature and any biological resources.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Definition_of_Branded_Drugs\"><\/span>Definition of Branded Drugs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Branded drugs or Brand name\nmedicines are those medicines which are manufactured, discovered and sold by any\npharmaceutical company. They involve a lot of Research &amp; Development, testing,\napproval and paperwork to start their marketing. After getting the approval the\ninventive companies begin to exclusively market their branded drug for a period\nof 20 years. <\/p>\n\n\n\n<p>Generally, these branded drugs are\nsold at higher prices so that the company producing that particular drug can\ncover the cost of research and development put in manufacturing of the drug. Only\nafter the expiry of patent, generic drugs can enter the market for sale.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Purchase_of_Drug_Patents_by_the_Pharmaceutical_Companies\"><\/span>Purchase of Drug Patents by the Pharmaceutical\nCompanies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Whenever a valuable or extensively popular drug loses its patent protection, generic competition takes over the market. The parent company loses a vast asset as most of the market will assemble towards the lower priced generic drug. In such cases the small companies wait for the opportunities to make money. <\/p>\n\n\n\n<p>Patent laws have given a boost to drug manufacturer who does not do Research &amp; Development of their own. These companies wait for expiry of patents and then hurry to purchase those <a href=\"https:\/\/corpbiz.io\/drug-license\"><strong>Drugs licenses<\/strong><\/a>. After purchase of drug patents they increase the price of the medicine, as patented medicines have no price tags. <\/p>\n\n\n\n<p>The reason for no fixed price is\nthat they did not spend their capital on Research &amp; Development. Consequently,\nthey invest in purchase of drug patentsand\nnot in research for development of drugs. This has led to increase in patent\nmarketing in which licenses are bought and sold by middlemen who is searching\nfor financial benefit.<\/p>\n\n\n\n<p>While the main purpose of any\nbusiness is to make money but when dealing in the healthcare industry ethics has\nto be involved. The best thing is that the government can promote an atmosphere\nof balance in such cases. Although pharmaceutical companies deserve more support\nfor innovation of new drug, regulations should be made to prevent a monopoly in\nthe market.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Pharmaceutical companies spend\nbillions of money researching for the consequence and want for new drugs that\ncan help in saving lives. When two drugs that do the same thing come to the\nmarket at different cost, the one that has a lower price will be sold more in the\nmarket. <\/p>\n\n\n\n<p>Therefore, the company that manufactured the drug ends up running at a loss because it has a higher price. After purchase of drug patents they increase the price of the medicine, as patented medicines have no price tags. The reason for no fixed price is that they did not spend their capital on Research &amp; Development.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/benefits-of-drug-license-that-you-must-know\/\">\nFour Prominent Benefits of Drug license that you must know\n<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The pharmaceutical company in India spends a huge amount of their capital in researching for new drugs and variety of groupings so protection of patent is a must.&nbsp;Protection&nbsp;of patent promotes Research and Development (R&amp;D), as it makes sure that pharmaceutical companies have their own protection of&nbsp;intellectual property.&nbsp;By protecting the best interests of the pharmaceutical companies [&hellip;]<\/p>\n","protected":false},"author":18,"featured_media":20572,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[223],"tags":[1259],"acf":{"service_id":"98"},"authorName":"Sakshi Srivastava","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/03\/IMG-20180130-WA0007.jpg","authorDescription":"Sakshi has pursued B.B.A.LL.B.(IPR Hons.). She is an avid reader and is keen to gather and share her knowledge on the subjects relating to IPR, Company Law and GST. Priorly she has worked as a legal researcher and vide her articles she aims at improving the core knowledge of the subjects to the masses.","postViews":5008,"readingTime":5,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20565"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=20565"}],"version-history":[{"count":22,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20565\/revisions"}],"predecessor-version":[{"id":20590,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/20565\/revisions\/20590"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/20572"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=20565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=20565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=20565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}