SME PLAYERS MAY BENEFIT FROM "WHO" PATENT POOL INITIATIVE

 In a move that can throw open big scope for the small and medium pharma players in the country and curtail the huge profit margins of multinational biggies, the World Health Organization is making an initiative called ‘patent pool’ to make drugs for neglected diseases affordable across the world.

To begin with, the WHO is looking to create the patent pool for AIDS/HIV drugs and later it would be expanded to cover TB and Malaria drugs. With Indian generic producers being key players in the scheme of things, the WHO is holding an informal technical consultation with lots of Indian companies here on June 23, it is learnt. Leading companies like Ranbaxy, Torrent, Jubilant, Strides, Arcolab, Matrix, leaders of organizations like SPIC and IDMA, manufacturers from Thailand and Bangladesh are expected to attend the meeting.

The idea is to get patent holders to offer their intellectual property rights to the WHO pool and the world agency, based on the strength of the patent, will get the drug manufactured by selected Indian companies specially the SME players for distribution under WHO programmes across the world.

A licensing agency will manage the licences, negotiable and handle royalties, thus simplifying a process that usually requires complex negotiations and litigation over patent rights before cheaper medicines become available. Without having to wait for patents  to expire, which usually takes up to 20 years, producers will be able to make generic versions under predetermined licensing conditions. As the researches were done in universities, the multinational companies usually fund them through smaller companies against marketing right on royalty basis. Once the patent is ready, the multinationals would keep the licences from smaller companies, especially the small and medium firms, will have better chance to get associated with it, said a leader representing the SME sector.

SOURCE : CHRONICLE PHARMABIZ : VOL9.NO. 28  DT: 25th  JUNE 2009