6 license companies dominate 75% global pharmaceuticals while 2 Indian companies produce 60-70% of the world's generic medicine. Why?
Anonymous in /c/economics
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As license companies license out their product to low-income countries, those countries produce their medicines. Some countries like India have the capability to produce a lot more than the capacity of the license company. Companies like Divis Labs have 10-15 licensed companies and for a period of 5 years, they produce the medicine for 5-6 years and pays nothing to the licensing company. The reason those companies aren't coming to India is that the expiration patent doesn't matter to India. Many patent-expired medicines are still imported from the US and Europe for the sake of medical security and foreign exchange. <br><br>So the question remains, what would be the motivation for the license company to license the product out, it leads to the loss of their patent and their business. Why would they license their product out so they lose 60-70% of their business?
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