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  1. 1. Branded or Generic? The Name Game <ul><li>A pharmaceutical company discovers a new generic drug to treat or prevent a condition, </li></ul><ul><li>They put it through a series of clinical trials in order to gain approval for marketing from the Medicines and Healthcare products Regulatory Agency (MHRA). </li></ul><ul><li>the MHRA approves the drug and gives it a licence. </li></ul><ul><li>the pharmaceutical company can then market the generic medicine under a brand name. </li></ul><ul><li>The company then has exclusive rights to market the medicine for the licensed uses for a certain period of time, usually about 10 to 12 years. </li></ul><ul><li>This is known as a patent, and allows the drug company to recoup the costs of research and development of the new medicine, before other drug companies are allowed to produce it as well. </li></ul><ul><li>Other drug companies are likely to be able to produce and sell the medicine at a cheaper rate, because the research and development has already been done. </li></ul><ul><li>Once a patent expires, other drug companies then have the right to manufacture and market the generic drug. However, they must market it under a different brand name, or under its generic name. </li></ul>
  2. 2. <ul><li>For example, sildenafil (Viagra) is still under patent and so can currently only be marketed by Pfizer to treat impotence. Once the patent expires, we can expect to see other other pharmaceutical companies marketing potentially cheaper versions of the generic medicine sildenafil, either under different brand names, or simply as the generic sildenafil. </li></ul><ul><li>Ibuprofen on the other hand is a much older medicine and can already be bought under various different brand names, eg Nurofen (made by Reckitt Benckiser), and Anadin ultra (made by Wyeth Consumer Healthcare), to name but a few. All of these contain ibuprofen as the generic medicine. Ibuprofen can also be bought simply as ibuprofen tablets, made by various different manufacturers who market it without a brand name. </li></ul>
  3. 3. Branded vs. generic- what do you think? <ul><li>Generic drugs are cheaper. The NHS could save up to £85 million by prescribing generic statin drugs to patients with high cholesterol. </li></ul><ul><li>A which report sites medicines such as paracetamol and ibuprofen can be bought for a fraction of the price of branded medicines if shoppers seek out less prominent labels. </li></ul><ul><li>It cites Panadol, which costs £1.85 for 16 tablets but contains the same amount of the active ingredient as Sainsbury's own-brand paracetamol, which costs 26p for the same size pack. </li></ul><ul><li>Drug manufactures put large amounts of money into research and development of new and existing drugs and need to recuperate this through sales. </li></ul><ul><li>Epilepsy medication: Anecdotal studies and small scale research report that switching epilepsy suffers from branded medicine to generic medicine can mean seizures return. </li></ul><ul><li>The placebo effect. Marketing makes people think branded drugs work better, so they believe they do. </li></ul>
  4. 4. Medical exports Earning from exports of Medicines and medical equipment. Territories in Western Europe receive 74% of all earnings from exports of medicines. These territories account for 91% of net medicine exports (US$). Non-European net exporters include China, India, Mexico and Singapore. India is a major source of medicines. Indian medicines are sold more cheaply than European medicines, therefore India’s export earnings are lower, so India appears smaller on this map.
  5. 5. Medical imports Nearly 90% of the territories mapped are net medicine importers. There is huge variation in the spending per person on imported medicines. The highest spending per person is in Luxembourg, where US$ 406 is spent on net imports of medicines per person, per year. At the other extreme, in Tajikistan, only 9 US cents are spent per person on net imports of medicines. This does not necessarily mean that there is very little medicine in Tajikistan, because there might also be domestic production of medicines and even exports of these. But for this territory that is not significant.
  6. 6. What might this map show? Research and development
  7. 7. Research and development <ul><li>In 2002, US$289 billion was spent on research and development in the United States; in the same year there was practically no research and development spending in Angola. It is thus unsurprising that the number of patents granted and the value of royalty and license fees received are also vastly different between these places. </li></ul>
  8. 8. <ul><li>Many people, most of them in tropical countries of the Third World, die of preventable, curable diseases.… Malaria, tuberculosis, acute lower-respiratory infections—in 1998, these claimed 6.1 million lives. People died because the drugs to treat those illnesses are nonexistent or are no longer effective. They died because it doesn’t pay to keep them alive. </li></ul><ul><li>— Ken Silverstein, Millions for Viagra, Pennies for Diseases of the Poor , The Nation, July 19, 1999 </li></ul>