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Analyzing the efficacy of the pharmaceutical patent system

Brown, Scott; Andersson, Martine
Master thesis
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URI
http://hdl.handle.net/11250/2609939
Date
2019
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  • Master Thesis [3762]
Abstract
The purpose of this thesis is to provide insight into the complexities of the pharmaceutical industry

and the subsequent role that patent protection influences both consumer markets and business

operations. The methods used are a combination of detailed market research, case studies and a

comprehensive analysis of fifteen industry leaders. The sector is heavily reliant on exceedingly

high research and development expenditures which exemplifies the incessant need for an adequate

patent system. The market is dominated by few, large multinational corporations and their patented

brand name drugs. The results show that the current environment has led to several imbalances in

the global pharmaceutical market. The predominant issues in the industry are limited access to

affordable drugs, monopolistic market power created by extensive exclusivity periods, and skewed

incentives that impact firm decision-making. The current system does not address traditional

market forces that are inherent to private firms and subsequently influence research investments

focused on Western markets. This has important implications on both developing nations and

overall global health standards.

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