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Extension of market exclusivity and its impact on the accessibility to essential medicines, and drug expense in Thailand: Analysis of the effect of TRIPs-Plus proposal

Author

Listed:
  • Akaleephan, Chutima
  • Wibulpolprasert, Suwit
  • Sakulbumrungsil, Rungpetch
  • Luangruangrong, Paithip
  • Jitraknathee, Anchalee
  • Aeksaengsri, Achara
  • Udomaksorn, Siripa
  • Tangcharoensathien, Viroj
  • Tantivess, Sripen

Abstract

Background In Thailand and the US negotiating FTA, the 'TRIPs-Plus' is one of the US proposal which would result in an extension of market exclusivity of innovative drugs. In addition, it would foreseeably lead to high and unaffordable medicine prices and inaccessibility to essential medicines.Objective To quantify the impact on medicine expense and medicine accessibility.Methods Based on 2000 to 2003 Thai Food and Drug Administration (FDA)'s and the Drug & Medical Supply Information Center (DMSIC), costs and accessibility were estimated upon the price and quantity costing between innovative drugs and their generics plus some parameters found from their competitive behaviour. Thereafter, we simulated the 10-year potential additional expense on the 2003 unit price of the patented and monopolized non-patented medicines.Results In 2003, the availability of generics helped to save 104.5% of actual expense and the accessibility would increase by 53.6%. By extension of market exclusivity, given that there were 60 new items approved annually, the cumulative potential expense was projected to be $US 6.2 million for the first year to $US 5215.8 million in tenth year.Conclusion The TRIPs-Plus proposal would result in a significant increase in the medicine expense; and a delay in the increase in drug accessibility via generics. Several options as well as other related mechanisms to help reduce the negative impact are proposed.

Suggested Citation

  • Akaleephan, Chutima & Wibulpolprasert, Suwit & Sakulbumrungsil, Rungpetch & Luangruangrong, Paithip & Jitraknathee, Anchalee & Aeksaengsri, Achara & Udomaksorn, Siripa & Tangcharoensathien, Viroj & Ta, 2009. "Extension of market exclusivity and its impact on the accessibility to essential medicines, and drug expense in Thailand: Analysis of the effect of TRIPs-Plus proposal," Health Policy, Elsevier, vol. 91(2), pages 174-182, July.
  • Handle: RePEc:eee:hepoli:v:91:y:2009:i:2:p:174-182
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    References listed on IDEAS

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    1. Richard G. Frank & David S. Salkever, 1997. "Generic Entry and the Pricing of Pharmaceuticals," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 6(1), pages 75-90, March.
    2. Lexchin, Joel, 2004. "The effect of generic competition on the price of brand-name drugs," Health Policy, Elsevier, vol. 68(1), pages 47-54, April.
    3. Magazzini, Laura & Pammolli, Fabio & Riccaboni, Massimo, 2004. "Dynamic Competition in Pharmaceuticals: Patent Expiry, Generic Penetration, and Industry Structure," MPRA Paper 15968, University Library of Munich, Germany.
    4. Hudson, John, 2000. "Generic take-up in the pharmaceutical market following patent expiry: A multi-country study," International Review of Law and Economics, Elsevier, vol. 20(2), pages 205-221, June.
    5. Garattini, Livio & Tediosi, Fabrizio, 2000. "A comparative analysis of generics markets in five European countries," Health Policy, Elsevier, vol. 51(3), pages 149-162, April.
    6. Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
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    Cited by:

    1. Kaplan, Warren A. & Ritz, Lindsay Sarah & Vitello, Marie & Wirtz, Veronika J., 2012. "Policies to promote use of generic medicines in low and middle income countries: A review of published literature, 2000–2010," Health Policy, Elsevier, vol. 106(3), pages 211-224.

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