Patenting a drug means obtaining the right to manufacture and market the drug that eventually leads to profit. Once a drug is patented, none of the manufacturers have the authority to copy or sell the same drug.
Below are the top 7 reasons for patenting a drug:
- No competitors: Once a drug is a patented, none of the manufacturers can imitate the same formulation of a drug or its chemical substance. The original manufacturer is the only sole owner of the chemical entity. None of them can compete with the original manufacturer by making a replica of the same drug without the owner’s concern.
- Preserving the originality: Patenting helps in maintaining the originality of the product. As no one can copy the patent drug so there would be no similar or low-quality replicas that may compete with the original. It is only the patent holder who has the right to make the original product and make the profit out of it. Once the patent registration is over then only a manufacturer can replicate it
- Maintaining the high standards: As the drug is manufactured only by the patent holder, so the quality standard of the drug is high globally.
- Profitability: With no other competitor in the market, the profit margin is generally high. The pharmaceutical company can surge out the profit from the drug for 20 years that would be far more than the investment.
- Supply of good quality products: It’s due to intellectual property law, pharmaceutical companies are investing in the R&D of drugs. As these companies know once they patent any good quality product then they can earn a good amount of profit from it.
- Pricing: Pricing is done by the patent holder and should be enough to make a profit out of it. As there is no competitive pricing for the drug so the manufacturer has the right to set its own pricing limit.
- Economic growth: Patenting accounts for an economic growth of the company as well as the pharma sector globally. It promotes innovation and economic growth. Patenting helps the pharmaceutical company to gain a competitive edge in the market, increase revenues and market share. It also opens doors of future growth.
The pharmaceutical patent is thus an important part of the Pharma sector. It aims at acknowledging and awarding the company who has made the new drug. Intellectual property law is a long process when it comes to pharmaceutical products. FDA takes a year or two to provide patent to any of the pharmaceutical drug.