Role Of Patents In The Growth Of The Pharmaceutical Industry

Abstract

The patentization of any novel innovation is the foremost requirement for the legal protection of exclusive rights over the innovation. Patents on medicinal drugs and its effects provide safety from duplicates by competitors. Novel medicines developed through sincere research form the basis of revenue of the drug manufacturer only after acquiring patents. The patents, thus, maximize the profits of industries by enabling capitalization of the innovative ideas or discoveries. Since the growth of any industry is directly proportional to sales and revenues, patents certainly aid in the development, growth and expansion. The case of earning revenues with patents is not the same with the pharmaceutical industry. A patent on a drug means diminished availability and augmented price of the drug. The healthcare industry has recorded extraordinary success and benchmarked profits but certainly jeopardises the life of patients who can’t afford the drug due to the soaring prices of patented medicine. Hence pharmaceutical industries are expected to preserve a balance between profits and humanity. In this manuscript, we have reviewed the effect on revenues and sales of twenty pharmaceutical industries caused by acquiring patents with highlights on the rate of change of growth per patent.