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Drug Patency
Pharmaceutical Marketing
2017-2018
Iman Ajami
Rawan Sabra
Lebanese University
Faculty of Pharmacy
1
Did you know that “Patent” and
“Exclusivity” are two of the most
commonly searched terms on the
FDA website?
2
Patent Definition
• Patent: is a property right issued to an
inventor “to exclude others from making,
using, offering for sale, selling or importing
the invention for a limited time, in exchange
for public disclosure of the invention when
the patent is granted.
• Generally, the term of a new patent is 20
years from the date on which the
application for the patent was filed.
3
The Contract of Patency
Reveal invention Get exclusivity
So that others can learn from it
and improve upon it! 4
Key facts about Patents
Isn't a permit to put a
product on the market
Says nothing about
whether the product is
safe
still have to go through
rigorous testing and
approval
5
Territoriality of Patency
The exclusive rights are only applicable in the
country or region in which a patent has been
filed and granted, in accordance with the law
of that country or region.
Country A
Country B
6
Why do we need a
Patent Law?
Rewards time, money & effort
associated with research
Stimulates further research as
competitors invent alternatives
Encourages innovation and
research by permitting
companies to recover R&D
costs during period of exclusive
rights
Limited term encourages quick
commercialization.
Patents allow exchange of
information between research
groups:
Avoiding duplicate efforts
Increasing general pool of
public information
7
Patentability Requirements
Novelty
• The invention
does not form
part of the
prior art.
• Prior art = any
knowledge
made
available to
the public
before the
filing date of
the relevant
patent
application
Inventive
step
• The invention
could not
“easily have
been made”
by “a person
with ordinary
skill in the
art” on the
basis of the
prior art.
Industrial
Applicability
• The invention
could be
manufactured
or utilized in
any type of
industry.
Sufficiency
of
disclosure
• An applicant
must disclose
the invention
in a
sufficiently
clear and
complete
manner for
the invention
to be carried
out by a
person skilled
in the art
8
Manufacturing a Generic Drug
This encourages competition and results in a
significant drop in drug costs, which ensures that life-
saving and important drugs reach the general
population at comparative prices.
Its patent has
expired.
Patents held on
the drug are
either
unenforceable,
are invalid or
would not be
infringed upon.
There has never
been any
patents on the
drug before.
In countries
where the drug
has no patent
protection.
9
Higher returns
on
investments
Strong
market
position
Exclusive
rights
Opportunity
to license or
sell the
invention
Increase in
negotiating
power
Positive
image for
your
enterprise
Advantages of patent (Innovator)
10
Disadvantages of patents (Innovator)
Technical information about
invention publicly available
High Cost (application,
searches for existing patents,
patent attorney's fees, annual
fee)
Application time-consuming
and lengthy process
(typically 3 to 4 years)
You'll need to be prepared to
defend your patent. Taking
action against an infringer can
be very expensive
11
Patents Bad Impact (on the market)
Products patents restricts the ability of local firms to manufacture
copies of new drugs leading in developing countries to:
Less Competition
12
Higher Drug Prices Lower Welfare
• Ever Greening: When brand-name companies patent “new
inventions” that are really just slight modifications of old
drugs.
• No significant therapeutic advantage, but for company’s
economic advantage.
The Ever Greening problem
13
Patent Protection Strategies
Pharmaceutical companies can employ
a number of strategies to maximize
patent protection on important
compounds, thereby maximizing the
commercial lifecycle.
STRATEGIES
• New Formulations
• New route of administration
• Stereoselectivity/Chiral Switches
• New Uses
• Combinations
• polymorphism
14
Patent Law Can Block Lifesaving Drugs
Pharmaceutical
companies
systematically screen
their drug candidates
to exclude the ones
lacking strong patent
protection.
Patents can be denied for
great drugs that might not
come to market because
they are:
• Disclosed in the past
(not novel)
• Naturally extended
existing knowledge
(obvious)
15
We don’t want to provide patent protection
for profit-increasing activities that do not benefit
patients, like “me too” drugs.
But some things that are obvious might be beneficial,
and for those we want to encourage development. 16
Patent Process Overview:
In order to protect your drug in multiple countries:
Direct or Paris route:
• File separate patent applications at the
same time in all countries in national or
regional offices.
• File in a Paris Convention country
within 12 months from the filing date
giving you benefit of claiming this date.
PCT route:
• File an application under the PCT
directly or within 12 months period
provided by Paris Convention from
the filing date which is valid in all
Contracting States of PCT.
17
WTO AND THE TRIPS AGREEMENT
Of these agreements, TRIPS
have the greatest impact on
the pharmaceutical sector and
access to medicines and
members adapt their laws to
the minimum standards of IPR
protection.
The World Trade Organization (WTO):
international organization dealing with the
rules of trade between nations.
In becoming Members of the WTO,
countries undertake to adhere to the 18
specific agreements.
18
WTO AND THE TRIPS AGREEMENT
Laws in all countries that belong to WTO require
permission from a current patent-holder, not only to
use the patented technology, but also to import
products embodying or produced by this technology.
The definition of novelty,
non‐obviousness, and
usefulness of inventions may
vary from country to country.
The TRIPS Agreement is flexible
in national patent‐protection
system design.
19
WTO Waiver
20
The countries that will benefit from the
waiver are the 49 poorest nations, classified
by the United Nations as “Least Developed
Countries” or LDCs.
All other countries, including developing
countries such as India and China, are still
bound by the WTO’s agreement on TRIPS with
respect to drug patents.
Waiver
2033
21
WTO Waiver Necessity
Critical due to higher
disease burden, especially
infectious diseases such
as HIV and malaria which
drugs are still under
patent
Developing and
strengthening the
manufacturing capacities
of developing countries as
these countries are often
unable to import cheap
copies of patent
protected drugs from
countries like India
Patents not effective
incentive in countries
which haven’t reached an
adequate level of
economic development
because they have no IP
to protect
22
Patent Laws in the Developing Countries
Why developing countries are
concerned about embracing the
patent protection?
Without implementing legal,
economic, and political structures
associated with free‐trade systems,
developing countries may not reap
the economic benefits of patent
protection.
Economic
23
Patent Laws in the Developing Countries
Stronger patent protection system will allow developing
countries to:
Attract foreign direct
investment (FDI)
Increase investments
in research and
development (R&D)
Encourage national
scientists to invent
new drugs and invest
in their national
economies
Improve the overall
quality of health
Enhance
competitiveness in
the world market
Accelerate economic
development for
developing countries
24
Patent Laws in the Developing Countries
1988 1995
425 billion
25
Economic Growth
Developing countries that have
embraced the TRIPS Agreement:
Japan Experience
After it strengthened pharmaceutical patent
protection in 1978, Japan experienced a
substantial increase in U.S. pharmaceutical
R&D investment: $135.8
million
$505.5
million
26
Lebanon's accession to the World Trade
Organization
Until today,
Lebanon didn’t get
the approval to
become a member,
noting that, the
period of
negotiations usually
varies between 2 to
5 years.
Preparation of the
basic documents
needed began in
late 2000, and
Lebanon proceeded
to submit the
documents and
negotiate their
content.
The first efforts for
Lebanon’s accession
to the WTO began
in 1998 with the
aim to
“Put Lebanon on
the world trade
map“.
27
TRIPS compatible Patent Law
was enacted on August 7,
2000, and entered into force
on August 14, 2000
Paris Convention membership
accession on June 18, 1924,
and entered into force on
September 1, 1924 28
Conclusion
• Patents and other forms of intellectual
property protection play essential roles
in encouraging innovation.
• However, countries should always have
certain amount of freedom in modifying
their regulations and various options in
formulating their national legislation.
29
Goal of providing
incentives for
future inventions
of new drugs
Goal of
affordable access
to existing
medicines
References:
National Center for Biotechnology Information (2013.). Drug patents: the evergreening problem. Retrieved Jan 22, 2018, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3680578/
AIPLA QUARTERLY JOURNAL (2005.). HOW PATENT PROTECTION HELPS DEVELOPING COUNTRIES. Retrieved Jan 22, 2018, from
http://developmentstudio.bskb.com/news/articles/documents/Ali_Imam_s_AIPLA_Quarterly_journal1.pdf
World intellectual property organization. Legal Requirements for Patentability. Retrieved Jan 23, 2018, from
http://www.wipo.int/edocs/mdocs/africa/en/wipo_pat_hre_15/wipo_pat_hre_15_t_3.pdf
The Conversation (2015.). World’s poorest countries allowed to keep copying patent-protected drugs. Retrieved Jan 22, 2018, from
https://theconversation.com/worlds-poorest-countries-allowed-to-keep-copying-patent-protected-drugs-50799
The new health care ( 2015.). How Patent Law Can Block Even Lifesaving Drugs.Retrieved Jan 23, 2018, from https://www.nytimes.com/2015/09/29/upshot/how-
patent-law-can-block-even-lifesaving-drugs.html
New Medical Life Sciences (2014.). Drug Patents and Generic Pharmaceutical Drugs. Retrieved Jan 18, 2018, from https://www.news-medical.net/health/Drug-Patents-
and-Generics.aspx
National Center for Biotechnology Information (2010.). Patent protection strategies. Retrieved Jan 23, 2018, from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3146086/
NIBUSINESS INFO .CO.UK. Get patent protection for your business. Retrieved Jan 18, 2018 , from https://www.nibusinessinfo.co.uk/content/get-patent-protection-your-
business 30
References:
31
• FDA/CDER SBIA CHRONICLES(2015.). Patents and exclusivity. Retrieved Jan 19, 2018,
fromhttps://www.fda.gov/downloads/drugs/developmentapprovalprocess/smallbusinessassistance/ucm447307.pdf
• Ministry of Economy & Trade (2000.). Patents law of Lebanon. Retrieved Jan 23,2018, from
http://www.economy.gov.lb/public/uploads/files/6061_8660_6573.pdf
• United Nations. LDC list. Retrieved Jan 23, 2018, from https://www.un.org/development/desa/dpad/least-developed-country-category/ldcs-at-a-glance.html
32

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patency-180312090413 (1).pptx

  • 1. Drug Patency Pharmaceutical Marketing 2017-2018 Iman Ajami Rawan Sabra Lebanese University Faculty of Pharmacy 1
  • 2. Did you know that “Patent” and “Exclusivity” are two of the most commonly searched terms on the FDA website? 2
  • 3. Patent Definition • Patent: is a property right issued to an inventor “to exclude others from making, using, offering for sale, selling or importing the invention for a limited time, in exchange for public disclosure of the invention when the patent is granted. • Generally, the term of a new patent is 20 years from the date on which the application for the patent was filed. 3
  • 4. The Contract of Patency Reveal invention Get exclusivity So that others can learn from it and improve upon it! 4
  • 5. Key facts about Patents Isn't a permit to put a product on the market Says nothing about whether the product is safe still have to go through rigorous testing and approval 5
  • 6. Territoriality of Patency The exclusive rights are only applicable in the country or region in which a patent has been filed and granted, in accordance with the law of that country or region. Country A Country B 6
  • 7. Why do we need a Patent Law? Rewards time, money & effort associated with research Stimulates further research as competitors invent alternatives Encourages innovation and research by permitting companies to recover R&D costs during period of exclusive rights Limited term encourages quick commercialization. Patents allow exchange of information between research groups: Avoiding duplicate efforts Increasing general pool of public information 7
  • 8. Patentability Requirements Novelty • The invention does not form part of the prior art. • Prior art = any knowledge made available to the public before the filing date of the relevant patent application Inventive step • The invention could not “easily have been made” by “a person with ordinary skill in the art” on the basis of the prior art. Industrial Applicability • The invention could be manufactured or utilized in any type of industry. Sufficiency of disclosure • An applicant must disclose the invention in a sufficiently clear and complete manner for the invention to be carried out by a person skilled in the art 8
  • 9. Manufacturing a Generic Drug This encourages competition and results in a significant drop in drug costs, which ensures that life- saving and important drugs reach the general population at comparative prices. Its patent has expired. Patents held on the drug are either unenforceable, are invalid or would not be infringed upon. There has never been any patents on the drug before. In countries where the drug has no patent protection. 9
  • 10. Higher returns on investments Strong market position Exclusive rights Opportunity to license or sell the invention Increase in negotiating power Positive image for your enterprise Advantages of patent (Innovator) 10
  • 11. Disadvantages of patents (Innovator) Technical information about invention publicly available High Cost (application, searches for existing patents, patent attorney's fees, annual fee) Application time-consuming and lengthy process (typically 3 to 4 years) You'll need to be prepared to defend your patent. Taking action against an infringer can be very expensive 11
  • 12. Patents Bad Impact (on the market) Products patents restricts the ability of local firms to manufacture copies of new drugs leading in developing countries to: Less Competition 12 Higher Drug Prices Lower Welfare
  • 13. • Ever Greening: When brand-name companies patent “new inventions” that are really just slight modifications of old drugs. • No significant therapeutic advantage, but for company’s economic advantage. The Ever Greening problem 13
  • 14. Patent Protection Strategies Pharmaceutical companies can employ a number of strategies to maximize patent protection on important compounds, thereby maximizing the commercial lifecycle. STRATEGIES • New Formulations • New route of administration • Stereoselectivity/Chiral Switches • New Uses • Combinations • polymorphism 14
  • 15. Patent Law Can Block Lifesaving Drugs Pharmaceutical companies systematically screen their drug candidates to exclude the ones lacking strong patent protection. Patents can be denied for great drugs that might not come to market because they are: • Disclosed in the past (not novel) • Naturally extended existing knowledge (obvious) 15
  • 16. We don’t want to provide patent protection for profit-increasing activities that do not benefit patients, like “me too” drugs. But some things that are obvious might be beneficial, and for those we want to encourage development. 16
  • 17. Patent Process Overview: In order to protect your drug in multiple countries: Direct or Paris route: • File separate patent applications at the same time in all countries in national or regional offices. • File in a Paris Convention country within 12 months from the filing date giving you benefit of claiming this date. PCT route: • File an application under the PCT directly or within 12 months period provided by Paris Convention from the filing date which is valid in all Contracting States of PCT. 17
  • 18. WTO AND THE TRIPS AGREEMENT Of these agreements, TRIPS have the greatest impact on the pharmaceutical sector and access to medicines and members adapt their laws to the minimum standards of IPR protection. The World Trade Organization (WTO): international organization dealing with the rules of trade between nations. In becoming Members of the WTO, countries undertake to adhere to the 18 specific agreements. 18
  • 19. WTO AND THE TRIPS AGREEMENT Laws in all countries that belong to WTO require permission from a current patent-holder, not only to use the patented technology, but also to import products embodying or produced by this technology. The definition of novelty, non‐obviousness, and usefulness of inventions may vary from country to country. The TRIPS Agreement is flexible in national patent‐protection system design. 19
  • 20. WTO Waiver 20 The countries that will benefit from the waiver are the 49 poorest nations, classified by the United Nations as “Least Developed Countries” or LDCs. All other countries, including developing countries such as India and China, are still bound by the WTO’s agreement on TRIPS with respect to drug patents. Waiver 2033
  • 21. 21
  • 22. WTO Waiver Necessity Critical due to higher disease burden, especially infectious diseases such as HIV and malaria which drugs are still under patent Developing and strengthening the manufacturing capacities of developing countries as these countries are often unable to import cheap copies of patent protected drugs from countries like India Patents not effective incentive in countries which haven’t reached an adequate level of economic development because they have no IP to protect 22
  • 23. Patent Laws in the Developing Countries Why developing countries are concerned about embracing the patent protection? Without implementing legal, economic, and political structures associated with free‐trade systems, developing countries may not reap the economic benefits of patent protection. Economic 23
  • 24. Patent Laws in the Developing Countries Stronger patent protection system will allow developing countries to: Attract foreign direct investment (FDI) Increase investments in research and development (R&D) Encourage national scientists to invent new drugs and invest in their national economies Improve the overall quality of health Enhance competitiveness in the world market Accelerate economic development for developing countries 24
  • 25. Patent Laws in the Developing Countries 1988 1995 425 billion 25 Economic Growth Developing countries that have embraced the TRIPS Agreement:
  • 26. Japan Experience After it strengthened pharmaceutical patent protection in 1978, Japan experienced a substantial increase in U.S. pharmaceutical R&D investment: $135.8 million $505.5 million 26
  • 27. Lebanon's accession to the World Trade Organization Until today, Lebanon didn’t get the approval to become a member, noting that, the period of negotiations usually varies between 2 to 5 years. Preparation of the basic documents needed began in late 2000, and Lebanon proceeded to submit the documents and negotiate their content. The first efforts for Lebanon’s accession to the WTO began in 1998 with the aim to “Put Lebanon on the world trade map“. 27
  • 28. TRIPS compatible Patent Law was enacted on August 7, 2000, and entered into force on August 14, 2000 Paris Convention membership accession on June 18, 1924, and entered into force on September 1, 1924 28
  • 29. Conclusion • Patents and other forms of intellectual property protection play essential roles in encouraging innovation. • However, countries should always have certain amount of freedom in modifying their regulations and various options in formulating their national legislation. 29 Goal of providing incentives for future inventions of new drugs Goal of affordable access to existing medicines
  • 30. References: National Center for Biotechnology Information (2013.). Drug patents: the evergreening problem. Retrieved Jan 22, 2018, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3680578/ AIPLA QUARTERLY JOURNAL (2005.). HOW PATENT PROTECTION HELPS DEVELOPING COUNTRIES. Retrieved Jan 22, 2018, from http://developmentstudio.bskb.com/news/articles/documents/Ali_Imam_s_AIPLA_Quarterly_journal1.pdf World intellectual property organization. Legal Requirements for Patentability. Retrieved Jan 23, 2018, from http://www.wipo.int/edocs/mdocs/africa/en/wipo_pat_hre_15/wipo_pat_hre_15_t_3.pdf The Conversation (2015.). World’s poorest countries allowed to keep copying patent-protected drugs. Retrieved Jan 22, 2018, from https://theconversation.com/worlds-poorest-countries-allowed-to-keep-copying-patent-protected-drugs-50799 The new health care ( 2015.). How Patent Law Can Block Even Lifesaving Drugs.Retrieved Jan 23, 2018, from https://www.nytimes.com/2015/09/29/upshot/how- patent-law-can-block-even-lifesaving-drugs.html New Medical Life Sciences (2014.). Drug Patents and Generic Pharmaceutical Drugs. Retrieved Jan 18, 2018, from https://www.news-medical.net/health/Drug-Patents- and-Generics.aspx National Center for Biotechnology Information (2010.). Patent protection strategies. Retrieved Jan 23, 2018, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3146086/ NIBUSINESS INFO .CO.UK. Get patent protection for your business. Retrieved Jan 18, 2018 , from https://www.nibusinessinfo.co.uk/content/get-patent-protection-your- business 30
  • 31. References: 31 • FDA/CDER SBIA CHRONICLES(2015.). Patents and exclusivity. Retrieved Jan 19, 2018, fromhttps://www.fda.gov/downloads/drugs/developmentapprovalprocess/smallbusinessassistance/ucm447307.pdf • Ministry of Economy & Trade (2000.). Patents law of Lebanon. Retrieved Jan 23,2018, from http://www.economy.gov.lb/public/uploads/files/6061_8660_6573.pdf • United Nations. LDC list. Retrieved Jan 23, 2018, from https://www.un.org/development/desa/dpad/least-developed-country-category/ldcs-at-a-glance.html
  • 32. 32