R&D Based Pharmaceutical Companies Vs. Generic Companies: A False Dichotomy?
Abstract
As recently as a decade ago, there was a clear line separating R&D-based pharmaceutical companies and generic companies; on one side were innovator pharmaceutical companies focused on developing innovative new medicines, and on the other were generic companies focused on copying those medicines once they lost exclusivity. That clear division, however, has become blurred in recent years. Due to various factors, many innovative pharmaceutical companies are seeking new revenue opportunities by either cultivating an in-house generics business or partnering with generic companies to manufacture their branded products; generic companies, which primarily focused on generic medicine production, are increasingly beginning to recognize the benefits of innovation and the more lucrative market for these products. The question then becomes, are partnerships/collaborations among the two industries and these ‘hybrid’ pharmas now the way of the future? And if so, can this new model, supported by a strong intellectual property framework, be used to spur local innovation in emerging markets to tackle the burden of diseases endemic to these countries?
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