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Possible Impact of Market Exclusivity Extension on Pharmaceuticals in Thailand

Possible Impact of Market Exclusivity Extension on Pharmaceuticals in Thailand. Chutima Akaleephan International Health Policy Program, Thailand 27 August 2005. IPR related Thai legal structures.

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Possible Impact of Market Exclusivity Extension on Pharmaceuticals in Thailand

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  1. Possible Impact of Market Exclusivity Extension on Pharmaceuticals in Thailand Chutima Akaleephan International Health Policy Program, Thailand 27 August 2005

  2. IPR related Thai legal structures • Thailand has amended its Patent Act to conform with the main points of TRIPs since 1992, eight years before the 2000 deadline in WTO agreement • Thai Patent Act and Trade Secret Act conform with all TRIPs’ requirements • However, the Patent Act still does not cover cross country CL of the Doha Declaration

  3. US FTA with others countries: issues related to pharmaceuticals • Data exclusivity • Linkage between market registration and patent • Patent term compensation due to delay of patent approval • Patent term compensation due to delay of market authorization process • Intellectual property law enforcement • Restriction on CL to only the case of government use • Limitation or cancellation of parallel import • Limitation on patent cancellation

  4. Proportion of Drug in Health Expense, 1996-2000 ($US million) Drug expenditure (retail price) Source: Thailand Health Profile 2001-2004

  5. Possible impact of FTA on domestic manufacturers • Main features of the local industries • Mainly conventional dosage form • Limited capacity for production of raw materials • Limited capacity on bioavailability studies • Potential benefits of FTA: • improve standard and quality • increase export opportunities (AFTA, BIMST-EC) • opportunity for cheaper raw material • Negative impact of FTA: • reduce government’s revenue • Disappear or being taken over • longer period of expensive innovative drugs

  6. Market authorization, market exclusivityandimplication of its extension

  7. The 2002 imported drugs Total value ~ 500 million USD 1,136 generic names First 49.9% 74 generic names Patent search Generic drugs availability 42 items Non-patented but monopoly 14 items Patented drug 18 items Sample selection

  8. Average months for Market Authorization, 1983-2003

  9. Market exclusivity (14 Patented drugs)

  10. 2003 Current cost saving of 42 generic drug substitution ($US million)

  11. Forecasted additional expense for minimum implications from three years market exclusivity extension ($US million)

  12. Forecasted additional expense from ME extension (million USD)

  13. Recommendation for alternative negotiation positions for Thai-US FTA Main position: zero negative public health implication Rationales: • Current patent system has already allowed 13.4 to 18.8 year of market exclusivity- very long. • Additional public burden from market exclusivity is very high (may double health expense) • Accept TRIPS plus means amendment of related laws which also benefit all other trade partners

  14. Alternative position: least public health implications • No or shortest market exclusivity extension • Case by case basis on compensation for delayed patent registration and market authorization • Compulsory licensing in such condition as national emergency and extreme emergency must be retained • Prevention of abuse in the implementation of linkage between drug registration and patent

  15. Measures to alleviate the possible future negative implication • Improvement of the patent registration process and database • close coordination between Department of IP and FDA • reevaluation of patent of new use of drug • closely monitor potential evergreening patent with heavy penalty • easy search of IP database • expert in pharmaceutical and/or chemistry could play important role in examination of patent application • Support more R&D capacity of domestic manufactures • Promotion of rational drug use and generic substitution • Support further improvement of GMP to international qualification

  16. Thank you for your attention

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