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Estimating the Effects of Global Patent Protection in Pharmaceuticals: A Case Study of Quinolones in India

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Author Info
Shubham Chaudhuri
Abstract

In the context of the TRIPS agreement and the accompanying debate about the merits of the requirement to enforce product patents for pharmaceuticals, this paper provides a rigorously-derived estimate of the possible impact of pharmaceutical product patents on prices and welfare in a developing economy. Using detailed product-level data on monthly pharmaceutical prices and sales over a two year period from January 1999 to December 2000, the study estimates key price and expenditure elasticities and supply-side parameters for the fluoroquinolone (quinolone henceforth) segment of systemic anti-bacterials (i.e., antibiotics) in the Indian pharmaceuticals market. These estimates are then used to carry out counterfactual simulations of what prices, profits, and consumer welfare would have been, had the fluoroquinolone molecules under study been under patent in India as they were in the U.S. at the time. [BREAD Working Paper No. 125, July 2006]

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Paper provided by esocialsciences.com in its series Working Papers with number id:772.

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Date of creation: 2006
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Keywords: International Patent Protection; Pharmaceuticals; TRIPS; Demand Estimation;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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    Other versions:
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Rajat Acharyya & Maria D.C. Garcia-Alonso, 2009. "Weak IPR and Imitation in the South and International Exhaustion of Patent Rights in the North for Innovated Drugs: A Policy Game," Studies in Economics 0919, Department of Economics, University of Kent. [Downloadable!]
  2. Lee Branstetter & Kamal Saggi, 2009. "Intellectual Property Rights, Foreign Direct Investment, and Industrial Development," NBER Working Papers 15393, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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