UNCTAD competition policy meeting to discuss 'Big Pharma' tactics

Potentially anticompetitive practices in the pharmaceutical industry are among topics to be discussed at a global meeting on competition next week in Geneva, Switzerland, being held under the auspices of the United Nations Conference on Trade and Development (UNCTAD).

Pharmaceutical companies say patent protection is necessary to cover the average $1.38 billion costs of developing a newer, better drug. But concern sometimes arises when companies use tactics to extend the life of the patent and delay exposure to competition, says Ebru Gokce, an UNCTAD economist working on competition policy and consumer protection issues, ahead of the meeting.

"We're not questioning the merit of patent protection. We're questioning the anti-competitive nature of practices, such as pay-for-delay agreements, that prolong market exclusivity," Ms Gokce says, referring to agreements which occur when a patent holder compensates a competitor to delay or abandon the launch of a generic drug.