Linked by Eugenia Loli-Queru on Tue 27th Feb 2007 23:57 UTC
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RE[2]: I'll give it...
by StephenBeDoper on Wed 28th Feb 2007 07:08
in reply to "RE: I'll give it..."
Why would a pharmaceutical company copy a competitor's drug and sell it for less?
That does happen, at least with AIDS medications. Several pharmaceutical companies got themselves some bad press a few years ago when they started trying to crack down on African companies selling unlicensed & less-expensive equivalents of commercial medication for treating AIDS.
// Why would a pharmaceutical company copy a competitor's drug and sell it for less? //
They're called "generic versions" designed to be identical but the same. In Australia, companies are more or less forced to release the drug formula and molecules to the generic competitors to enhance competition and ensure drugs are affordably made available to those who need them.






Member since:
2005-07-08
I feel like ranting some more...
We don't need or want patents anymore. Everybody is now connected. Tangible objects can be produced anywhere and sold anywhere else. Intangible deliverables are even easier to bring to market. The market wants just barely enough suppliers for any product for competition to work, and often even less than that. There's no money to be made in selling something that's already available. You're either first to market, best to market, or searching for a new market. The global marketplace is the ultimate incentive to innovate.
Some suggest that patents are bad for software, but good for other markets such a pharmaceuticals. I disagree. Why would a pharmaceutical company copy a competitor's drug and sell it for less? This would cause a price war that will rapidly drive the price down to near the cost of production and distribution. Pharmaceutical companies don't want to save people's lives and break even, they want get filthy rich. The only way to do this is to be the first or best to market with a useful drug and charge whatever outrageous price the healthcare industry is willing to bear.
Patents are a kludge for a time where it was easier to make money off of other people's ideas than to develop your own. This is no longer the case in any market that I can think of. Down with patents.