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Pharmaceutical patents and prices : a preliminary empirical assessment using data from India

Author

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  • Duggan, Mark
  • Goyal, Aparajita
Abstract
The enforcement of stringent intellectual property rights in the pharmaceutical sector of developing countries generates considerable controversy, due to both the extensive research investment and the public policy importance of this sector. This paper explores the likely effects of enforcing product patents on prices and utilization of drugs in the Central Nervous System market in India. The Central Nervous System segment is the second largest therapeutic category in terms of retail sales in the world and is one of the fastest growing segments in India. Using information on product patents granted by the government and panel data on pharmaceutical prices and utilization from 2003-2008, the paper finds limited evidence of overall price increase following the introduction of product patents. However, there appear to be heterogeneous effects on prices by the type of product patent granted on drugs, implying the need for a careful examination of the product patent portfolio.

Suggested Citation

  • Duggan, Mark & Goyal, Aparajita, 2012. "Pharmaceutical patents and prices : a preliminary empirical assessment using data from India," Policy Research Working Paper Series 6063, The World Bank.
    • Handle: RePEc:wbk:wbrwps:6063
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    References listed on IDEAS

    as
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    Cited by:

    1. Roger Bate & Ginger Zhe Jin & Aparna Mathur & Amir Attaran, 2014. "Poor Quality Drugs and Global Trade: A Pilot Study," NBER Working Papers 20469, National Bureau of Economic Research, Inc.
    2. Gamba, Simona, 2017. "The Effect of Intellectual Property Rights on Domestic Innovation in the Pharmaceutical Sector," World Development, Elsevier, vol. 99(C), pages 15-27.

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    Keywords

    Markets and Market Access; Pharmaceuticals&Pharmacoeconomics; Real&Intellectual Property Law; E-Business; Access to Markets;
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