Production of Generic Drugs by Many Indian Pharmaceutical Companies – Assignment Example
The paper "Production of Generic Drugs by Many Indian Pharmaceutical Companies" is a brilliant example of a business assignment. The basic facts of the issue are extremely simple. Larger pharmaceuticals like Merck and GlaxoSmithKline spend significant resources on research for the development of many life-saving or improving drugs. To incentivize this expenditure on research many governments have established patents which allow companies to get a sufficient return on their investment. However, the Indian government’s legal system does not protect the patent right of these pharmaceuticals. Because of the poverty-stricken nature of most of the Indian populace, the government wants to keep the costs of many life-saving drugs low. In order to ensure this, it allows many pharmaceuticals to produce a generic copy of the same drug, which they produce at cheaper rates. The ethical dilemma is that on one side the pharmaceuticals have invested money into the research and expect a profitable return on their investment or they will stop investing their money. On the other hand, however, everyone deserves access to life-saving drugs like those used in AIDS treatment. There are many stakeholders involved in any decision taken in this scenario. The most obviously affected are the pharmaceutical companies, both the ones investing in research and those producing generic products, the patients and also in a less obvious way the national governments. Although this is a complex issue, there are possible solutions to ease the tension between the conflicting stakeholders. One is that of more government involvement, for example governments, setting a fixed return on the investment that pharmaceuticals make and compensating them from the loss. Another is that of ensuring that generic produce does not leave their national boundaries to be used in countries where patent laws do not allow generic production.