logo

Against Monopoly

defending the right to innovate

Monopoly corrupts. Absolute monopoly corrupts absolutely.





Copyright Notice: We don't think much of copyright, so you can do what you want with the content on this blog. Of course we are hungry for publicity, so we would be pleased if you avoided plagiarism and gave us credit for what we have written. We encourage you not to impose copyright restrictions on your "derivative" works, but we won't try to stop you. For the legally or statist minded, you can consider yourself subject to a Creative Commons Attribution License.


back

Why do companies with drug patents buy off generic makers?

The previously reported Plavix drug story gets more interesting (link here). The Economist suggests a few alternative explanations for why a patented drug holder and a competitive generic maker would do a deal rather than compete; that happened in the Plavix case, (although it was subsequently overturned by the government).

One reason might be to "to delay its introduction of a cut-price product". A second might be that "the cost and legal uncertainty associated with patent trials are simply too great." Finally, it may be that the firm may know that "its patent was mistakenly awarded, perhaps because the purported breakthrough was too minor or obvious."

David Balto, a former official at the Federal Trade Commission, is quoted as saying, "Branded pharmaceutical firms have been stretching the limits of what deserves a patent, and the courts are just catching up."

It seems they have a long way to go.


Comments


Submit Comment

Blog Post

Name:

Email (optional):

Your Humanity:

Prove you are human by retyping the anti-spam code.
For example if the code is unodosthreefour,
type 1234 in the textbox below.

Anti-spam Code
UnoSevenTwoQuatro:


Post



   

Most Recent Comments

A Texas Tale of Intellectual Property Litigation (A Watering Hole Patent Trolls) Aunque suena insignificante, los números son alarmantes y nos demuestran que no es tan mínimo como

James Boyle's new book with his congenial IP views free to download

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1

French firm has patents on using computers to choose medical treatment 1