COVID-19 pandemic threat to IP and leading to political pressure to lower prices

Contrary to conventional wisdom that says the coronavirus pandemic will generally benefit biopharmaceutical companies, a new Pioneer Institute study finds that many companies will emerge from the pandemic commercially weaker, dealing with delays in new product launches and with fewer resources to invest in research and development.

“There will certainly be worldwide demand for COVID-19 treatments,” said Dr William Smith, author of The Negative Impact of COVID-19 Upon the Biopharmaceutical Sector. “But they will also require massive investments in clinical development and manufacturing, and political pressure on pricing makes it impossible for companies to recoup those investments,” he warned.

Cipro (ciprofloxacin) is an antibiotic well-suited to treat anthrax, which began arriving in mailboxes in the weeks after September 11, 2001 bombing. The Centers for Disease Control recommends that patients exposed to the bacteria take Cipro twice a day for 60 days. Despite the fact that the entire course of treatment would only cost $219, developer Bayer (BAYN: DE) agreed to cut the price in half after the US Secretary of Health and Human Services at that time threatened to take away the company’s patent.