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Researchers Work Around Hepatitis Drug Patent

Several readers let us know about a pair of British researchers who found a workaround to patents covering drugs used to treat hepatitis C. The developers intend to produce a drug cheap enough to supply to people in the poorest parts of the world. The scientists found another way to bind a sugar to interferon, producing a drug they say should be as long-lasting and effective as those sold (at $14,000 for a year's supply) by patent holders Hoffman-La Roche and Schering Plough. Clinical trials could begin by 2008. The article quotes developer Sunil Shaunak of Imperial College London: "We in academic medicine can either choose to use our ideas to make large sums of money for small numbers of people, or to look outwards to the global community and make affordable medicines."

58 of 298 comments (clear)

  1. Thumbs up! by Anonymous Coward · · Score: 5, Interesting

    Before the arguments about the effectiveness of this drug compared to the patented one, the morality of patents on medicine and the soviet russia jokes break out; I'd like to show my respect for these people. It's great to see this effort!

    1. Re:Thumbs up! by wasted · · Score: 4, Informative
      Before the arguments about the effectiveness of this drug compared to the patented one, the morality of patents on medicine and the soviet russia jokes break out; I'd like to show my respect for these people. It's great to see this effort!

      Another patented drug to treat Hep C is on its way as well.
    2. Re:Thumbs up! by MidVicious · · Score: 2, Funny

      In Soviet Russia, drugs patent you!

      Thanks for the assist ;)

    3. Re:Thumbs up! by AuMatar · · Score: 4, Insightful

      In capitalistic America, drug companies patent your genes. That will be 1 million dollars for infringing, payable up front.

      --
      I still have more fans than freaks. WTF is wrong with you people?
    4. Re:Thumbs up! by arivanov · · Score: 3, Interesting

      Chemical compounds as such are not patentable. Their use for a specific purpose, synthesis and administration are. That is usually enough to protect a drug to a point where you have effectively patented the compound.

      --
      Baker's Law: Misery no longer loves company. Nowadays it insists on it
      http://www.sigsegv.cx/
    5. Re:Thumbs up! by Znork · · Score: 2, Informative

      Depends on the patent system. IIRC, the system in India specifically only granted the patent on the specific process to make the compound, which let generics manufacturers develop different methods of synthesis and produce the same compound. While, again, if I remember correctly, other countries granted the patent on the method by which the specific compound worked, essentially meaning the medicine itself is patented.

    6. Re:Thumbs up! by DRJlaw · · Score: 4, Informative

      Chemical compounds as such are not patentable.

      Absolutely wrong.

      Novel and non-obvious chemical compounds are patentable.

      Naturally occurring chemical compounds may be patentable when claimed as purified forms, as pharmaceutically acceptable salts, etc. While you may argue that it is obvious to purify a compound, when the application is drafted correctly, it often discloses or is based on a qualifying disclosure of a particular compound having a particular and previously unknown utility other than its mere existence. That is sufficient to eliminate the "obviousness" of a generic purification argument.

      Novel and non-obvious uses of known chemical compounds may also be patentable, as you suggested, but that category represents the minority of chemical patent applications.

  2. Patent ruling is waste of resources by Anonymous Coward · · Score: 5, Insightful

    Isn't it pathetic that researchers or bussinesses try to find workarounds for patents? This kind of news shows that patent ruling is totally flawed by design. I'm in favor of giving inventor a commercial advantage for his/her invention. This can be tax reduction for product using this patent etc. But giving inventor a monopolistic right is stupid however you evaluate the idea.

    1. Re:Patent ruling is waste of resources by joelt49 · · Score: 4, Insightful

      No, it's not. Inventor's don't have to share anything with the outside world. Patents are simply recognizing the inventor's right to say, "I'll show you how to do X if you promise to do Y." Why shouldn't the inventor have the right do do that? It's his invention after all. There may be specific problems with the implementation of our current patent system, sure. But granting monopolistic privileges in some form is still a good idea and respect's the inventor's rights.

    2. Re:Patent ruling is waste of resources by poopdeville · · Score: 5, Informative
      Perhaps you've heard of the Hippocratic Oath?

      The relevant bit:

      To look upon his children as my own brothers[1], to teach them this art if they so desire without fee or written promise; to impart to my sons and the sons of the master who taught me and the disciples who have enrolled themselves and have agreed to the rules of the profession, but to these alone the precepts and the instruction.


      [1] An earlier bit mentions the oath taker's "parents." These are to be understood to be his mentors. Thus "his children" are the oath taker's peers.
      --
      After all, I am strangely colored.
    3. Re:Patent ruling is waste of resources by vandan · · Score: 4, Insightful
      No, it's not. Inventor's don't have to share anything with the outside world.

      And where did this inventor get their education from? And their materials? And their food?

      It is the responsibility of inventors to share their ideas with all society. As others have pointed out, they have a right to make a fair living off these ideas. But there is a limit to how 'fair' you can get, and making billions of dollars in profits while others are suffering and dying is going way past that point.

      Joelt, You need to have a good, long think about yourself. Profit is not the most important thing in the world.
    4. Re:Patent ruling is waste of resources by noidentity · · Score: 2, Insightful

      "I'll show you how to do X if you promise to do Y." Why shouldn't the inventor have the right do do that? It's his invention after all.

      The problem is that many discoveries are also given this treatment, preventing use by others who independently discover the same thing.

    5. Re:Patent ruling is waste of resources by Joebert · · Score: 3, Insightful
      Profit is not the most important thing in the world.

      Perhaps, but the most important thing in the world happens to like guys with big, profits.
      --
      Wanna fight ? Bend over, stick your head up your ass, and fight for air.
    6. Re:Patent ruling is waste of resources by hclyff · · Score: 3, Interesting
      And where did this inventor get their education from
      Absolutely. All discoveries are done based on previous published research. If every pharmaceutical company kept their research to themselves, there wouldn't be much progress really. Not to mention that in academia, if you don't publish you don't exist. That's where patents sort of come in, to allow and encourage publishing of results done by private companies.

      Think of it this way: if those companies weren't guaranteed profit in case of discovering something useful, they wouldn't do the research in the first place.
    7. Re:Patent ruling is waste of resources by Znork · · Score: 5, Insightful

      "Think of it this way: if those companies weren't guaranteed profit in case of discovering something useful, they wouldn't do the research in the first place."

      Except, of course, they're not guaranteed the profit for the research, they're guaranteed the profit from having a monopoly. Which essentially means their incentive is to get as much profit out of the monopoly as possible (ie, a huge incentive for marketing) while investing the bare minimum necessary to gain another monopoly into research.

      And, of course, ignoring the fact that if we didnt grant those monopolies could very well be spending the money now going to the pharmas directly on research instead, thus getting more than five times the R&D done for the same amount of money we spend on medicines today.

    8. Re:Patent ruling is waste of resources by dwandy · · Score: 4, Insightful
      To show an example to illustrate this (picked purely at random, and may not be typical in the industry, but I suspect it is):

      Revenue (ttm) : 52.21B
      Gross Profit (ttm): 42.77B
      Profit Margin (ttm): 24.17%

      ...and this shows the industry enjoys about a 65% Gross Margin.

      Contrast that with an industry that doesn't enjoy protection on it's product, say Toyota (also picked randomly but assumed to be more or less industry leader at this time)

      Revenue (ttm): 189.92B
      Gross Profit (ttm): 34.83B
      Profit Margin (ttm): 7.00%
      ...and this industry has to make do with only about 19% Gross Margin.

      So to agree with what you're saying: Pfizer made some 42billion dollars in profits because they have protection on their product; and that profit comes directly from the consumer, and comes directly at the expense of sick people that can't afford the drugs they produce.

      'Research' is an expense which decreases profit. Such large profits are simply monopoly protection income that has not been spent as promised: on research.
      This clearly shows us that we need to at a minimum reduce the patent term, and more realisticly review the very concept of drug patents.

      Anyone who argues that the current patent system is necessary or healthy in the face of these abnormal profits is sick and twisted or stupid or corrupt or maybe all of the above ...

      --
      If you think imaginary property and real property are the same, when does your house become public domain?
    9. Re:Patent ruling is waste of resources by dosquatch · · Score: 2, Insightful

      Do you really care what a doctor's motivations were as long as they make a cure or treatment for something available to those rich enough to afford it as fast as they possibly can?

      There, fixed it for you.

      --
      "Hey, the third matrix movie would have been good except for the plot,story, and acting." --AC
    10. Re:Patent ruling is waste of resources by Znork · · Score: 2, Insightful

      If you in and analyze the numbers on the books of the pharmaceuticals you'll also note a other vast differences between their financials and companies like your car producer.

      IIRC, the breakdown is something like this:

      Pharmaceutical:
      35% production
      35% marketing and administration
      15% R&D
      15% profit

      Cars:
      80% production
      10% marketing and administration
      5% R&D
      5% profit

      Now, the pharmaceuticals of course claim that they invest a high amount in R&D, with the comparison against other industries. However, what it really shows is that for a functional competetive industry, a large part of the end-price is the actual cost of producing the product (which, incidentally, is also why you dont get a problem with illegal car copies). It also shows that the efficiency of the industry is horrific; generics can usually be produced at a fraction of the price, so the 35% representing production would probably be cut to at least a third in a competetive market.

      End result; the vast overfinancing created by monopoly revenue is grossly inefficient in steering money towards the supposed goals, and instead create a waste unseen in other industry.

    11. Re:Patent ruling is waste of resources by Jzor · · Score: 2, Funny

      World of Warcraft?

    12. Re:Patent ruling is waste of resources by Thomas+the+Doubter · · Score: 2, Interesting

      This reasoning is very off base. First of all, Pfizer happens to have one of the highest profit margins in the industry, but that is not really relevant...
      Most of the folks here have little to no understanding of the cost of Research for the pharmaceutical industry. It does indeed take several millions of dollars to identify and produce a promising compound. You folks see to think the work is all done at this point, but in fact it is just beginning. There have been estimates that the Clinical Reseach, which is to say the testing and evaluation of varying doses and regimens across various ages and populations of people - hundreds and hundreds and even tens of thousands of people - can cost upward of 800 Million Dollars. And this is before a single dollar is made in profit! The up-front cost is huge, the risk tremendous, and the profits, if and when realized can be good. A significant fraction of that profit goes directly back into research and development, as well as compensation for the risk-takers. Let's put it another way - if the government (any government) had to finance the research carried out by the major pharmaceutical companies, most of it simply would not get done. The result would be fewer drugs and drugs on the market with less testing than we see now!
      Yes, it is true that patents, in effect subsidise a profitable industry - but I tend to think of the outcome as evidence that patents sometimes work - the alternatives to the present system are not likely to be as good.
      Thomas

    13. Re:Patent ruling is waste of resources by FallLine · · Score: 2, Informative
      And you think those 'studies' will not be done? How many people still buy Tylenol, when there is a perfectly good generic acetaminophen bottle sitting right next to it in most pharmacies for half the cost?
      The same can be said of many things, however this is usually only with something that costs a relatively small amount in the first place so that the percieved price difference is very small for the consumer. This is not the case with generics. Furthermore, it ignores the fact that unless the doctor specifically specifies no generic substitution the rx, most managed care companies will insist that the generic be taken. Most doctors do not do this unless there is a good reason to (in some cases, the generic formulations are not consistent and it can make a difference)... if the doctors abuse this though the payors will tend to get upset.

      Viagra will still sell like hotcakes, even though generic equivalents will be available.
      Some people will still buy viagra when it is off patent. However, research has shown that once generics emerge the revenues of the drug companies decline dramatically -- especially when both the customer and the payor have to pay. This is even true with line extensions.

      (Probably manufactured in the same facility, just with a different label).
      Not terribly relevant, but no, they're not (I know people high up in the foodchain at J&J).

      That's where their marketing budget goes.
      Their "marketing" budget is little understood and vastly overstated by the likes of people on Slashdot. The "marketing" you are thinking of is DTC ads (TV, Magazines, etc) which are only about 1% of revenues (or about 10% of their promotional budget). They spend about 50% of their promotional budget of providing free samples to doctors (which, in turn, doctors give to patients--which are often beneficial) and most of the remaining amount paying their sales reps to promote new drugs.
    14. Re:Patent ruling is waste of resources by vandan · · Score: 2, Insightful
      There is plenty of money at the top end. It's a bald-faced lie that this type of research is not affordable by governments.

      There's one thing you can say about cold, callous bastards, they don't suck off the public teat. You'll never find one on welfare, they can pull their own weight.

      That's ridiculous! How can you possibly say that they're pulling their own weight? They earn thousands of times what the average worker does. Surely they don't work thousands of times harder. It is these people exactly that bludge off society, hence their massive income without having to work for it. Their welfare might not be paid for directly by the state, but the state intervenes to make sure that they can continue to extract their magnificent profits from everyone else, while not actually doing anything productive. Sure, there are people on welfare that take a small proportion of the GDP, but by comparison, the top end of town take hundreds of times more.
  3. Big Pharm does this too by Heir+Of+The+Mess · · Score: 5, Interesting

    For example Australian company Biota created and patented Relenza for treating bird flu, then Roche modified their product slightly to produce and patent Tamiflu.

    --
    Australian running a company that does C# / C++ / Java / SQL / Python / Mathematica
  4. Re:that's a nice sentiment by Anonymous Coward · · Score: 3, Insightful

    You missed the profits. Don't forget the silly profits. Almost £7 billion profit for Glaxosmithkline. You read that right - £7,000,000,000 - or $14,000,000,000.

    They're suggesting making cheap drugs, keeping the patents away from big companies, and having clinical testing subsidised by the countries where they'd be used (which seems fair if they aren't trying to profiteer), as well as developing drugs on obscure illnesses which the west doesn't have (and big business ignores). It's a win/win situation. Stop making a noble effort sound like something bad.

  5. yes, you are by Anonymous Coward · · Score: 5, Insightful
    1. Drug companies have to turn a profit; otherwise, they don't produce the drugs.


    Drug companies spend far more money on advertising than they do on research and development. The next time you watch "Wheel of Fortune", you might realize that the billions of dollars being spent pushing viagra and nexium on everyone are NOT making their way to fundamental advances in science.


    2. The more money a drug company makes off a medicine, the more valuable it is. A drug company's profits are a function of how much people value that drug -- the drug's social utility (this is basic economics).


    No matter what the local basement-dwelling Rand-ite may tell you, economics is not a science and is not necessarily the best model for health care. Human welfare is not a widget that can (or should) be bought and sold like a car or an mp3 player.


    3. Once the drug companies patents run out, anyone can produce generic medicines cheaply.


    And how many millions of people will die in the meantime?

  6. the so-called "inventor's rights" are in fact ... by erlehmann · · Score: 5, Informative

    ... just vehicles to ensure progress.

    there is no such thing as a "natural right" an inventor has: patent law builds on the premise that a patent is a reward and that many people like to be rewarded.

    you are confusing it with copyright law - which grants the author rights because it is his creation - no one else could habe written harry potter, for example. in contrast, sooner or later someone figures out how molecule XYZ can be synthesized - there usually is no "personal creativity" involved.

  7. Re:fallacious by joelt49 · · Score: 2, Insightful

    Your comment shows a fundamental misunderstanding of the way things work in a capitalist society. Even with this drug, the researchers will have to convince some drug company to manufacture and distribute this drug. How will they do it? By convincing the manufacturer that they will be able to make a profit off of it. Here's the crux of the issue -- you state, As the above example shows, you don't need extra profit to develop a new drug. That's true. But in rare circumstances. The key is when you say "a" new drug. Not many new drugs. Why hasn't this method been used for lots of other patented drugs? Most likely b/c it's impracticable on a large scale.

    You're unlikely to replicate the research large drug companies do in academia. Somebody has to pay for the research. The money has to come from somewhere. That somewhere is usually from profits from drugs. And as I said earlier, profits are an indication of social utility -- how much people value the drug. The more profits, the more people value the drug. The larger the profit, the more good the drug does, and the more incentive to produce that drug (which is why capitalism is pretty cool). While you are denying people the drug now, it will be available to them in the future. With most patented medicines, the drug wouldn't have been developed in the first place if the drug companies didn't think they could have turned a profit. As I said, it's better to have the drug available in 14 years or so (or however long patents expire) than not have the drug available at all.

    And admittedly, I haven't read the article. However, the summary mentions that the researchers are mimicking the actions of a patented drug. How do you think it was found out that this particular action helped in the first place? I'd be willing to bet my $.02 that it came from commercial drug companies hoping to make a profit.

    Bottom line: Drug companies have to make a profit. They have to recover costs (and R&D costs are huge, as are clinical trials, and a lot of money gets spent researching drugs that will never make it to market). Patents ensure this and also incentivize drug companies to develop the most useful medicines.

  8. Not at all by Habrok · · Score: 2, Insightful

    It was "we in academic medicine", not "we in corporate medicine". Academic research is not motivated by profits, or at least, it should not be.

    Secondly, you can't really apply demand-supply analysis on life-saving drugs. When it is a matter of life and death (and there isn't any alternative product), the demand is infinite.

    Thirdly, it is quite possible to provide economic (and other) incentives to researchers, even without patents.

    You know, there's a reason why doctors take the hippocratic oath. Medical researchers should do well to remember those reasons.

    --
    Ignore this sig
  9. Re:that's a nice sentiment by wired_LAIN · · Score: 2, Insightful

    Keep in mind that what is deemed an unacceptable drug in the developed world can be a huge benefit to developing nations. For example, lets say I have a very cheap drug that cures malaria in 80% of patients, but causes severe side effects in the remaining 20%. Clearly, this is unacceptable in the USA or other developed nations. However, in many countries in Africa, where millions of people die from malaria every year, this drug is perfect - its cheap, and it cures most of the patients. Regardless of the reletively high side effects, the benefit is enough that a drug like this would be considered a godsend by nearly all sub-saharan nations.

    --
    It is better to light one candle than to curse the darkness.
  10. Re:fallacious by GravelordBocephus · · Score: 4, Insightful

    "(the more profit, the more useful it is)" So a treatment for cancer taken three times daily for the rest of your life is more useful than a cure for cancer? I'll keep that in mind.

  11. DO these guys accept Paypal? by Stephen+Samuel · · Score: 3, Interesting

    'Cause, if they do, I'd like to donate $10 to their research fund.

    --
    Free Software: Like love, it grows best when given away.
  12. Re:fallacious by FinalMidnight · · Score: 5, Insightful

    Wow! I'm gobsmacked at your sheer, unabashed ignorance of "The way things work".

    To the first: what do you think the ratio of new drug research is to profits? For a major drug company? Conversely, what do you think the ratio of marketing vs profits? Got a clue? No? Feel free to go do a little googling. It is an open secret that drug companies spend almost nothing (compared) on research into new drugs. Even then the research directed is in very, very specific (eg profitable) areas. Hint! It makes a lot more money to market a drug for "Erectile Disfunction" than to actually make a simple, cheap cure for just about any disease you care to name.

    To address your second point: The profits made from a drug are a reflection of the profitability of that drug. Nothing more or less. Concrete examples of how _value_ and _profit_ are distinct concepts to follow.

    To the third: Once patents run out, drug companies market new, patented drugs. Older, generic drugs are not marketed. Part of the reason this happens is that drug companies advertise directly to doctors (who write the perceptions) and part of the reason is that drug stores make more money selling drugs that cost more. There are a bunch of simple ways to fix most of this in legislation. That, however, is another can of worms.

    Examples of point two and the relationship with point three:

    Ritalin: Heard of it? Great! How about Dexamphetamine? Not so much? Little known fact! Dexampetamine is a more effective treatment for ADD and ADHD than Ritalin. However it is perscribed less than a fifth as much. Why? Because the patents on Dexamphetamine ran out years ago. It can be made by any drug company and is a commodity item. Profits are very, very low. Ritalin is very profitable because it is a treatment. A patient will need to continue to take Rtalin for years. Possibly forever. Profitability: High! Value: Fuck All! Ritalin does a worse job than a drug that costs less than a third of the price.

    Treatment of stomach ulcers: A method of curing stomach ulcers has been around for more than ten years. Thats right, A complete cure! The Australian who discovered the cure was under attack from many major drug companies, who attempted to discredit him and his research. Why? Because anti-acid treatments of stomach ucers are a) Patented and b) something that needs to be taken _forever_. The cure relys on a simple, generic anti-biotic and some mineral treatments. Not patentable, therefore no profits.

    If you give a shit about any of these issues, you might be interested in the process of testing and approval that goes on in the USA compared to other countries (Like the UK or Canada) and what the differences mean. You might also be interested in the "Evergreening" of medical patents and the blatant kickbacks that medical companies give Doctors and Pharmacists.

    And YES, I am a fucking Pharmacist.

    --
    In the maelstrom of the chaos at the center of my mind, I taste the salt of sadness as I feel my soul unwind.
  13. Re:**Bullshit** by joelt49 · · Score: 2, Interesting

    Sorry for the flamebait, but you're a moron. Here's why:

    1. The software development industry is very different from the drug industry. In particular, look at the costs of bringing something to market. It costs far more to bring a patented drug to market than it does a computer program. So you have higher costs you have to recover.
    2. Where does a lot of support for Linux come from? Companies like Red Hat and IBM, who are also competing and want to turn a profit. However, IBM and Red Hat can support different niches of the market without competing directly. This is harder to do with prescription drugs.
    3. In effect, cooperation and competition are competing models. Cooperation appears to be working well in software (I'm currently using Firefox on Gentoo), but that model has failed to gain serious traction in the drug industry. If cooperation like this is so great, why hasn't it flourished more? Why aren't we seeing more stories of people cooperating like this working on new drugs?

    Sigh, why do I try to promote standard, mainstream economics on /.?

  14. Good old USA by oman_ · · Score: 3, Insightful

    A thousand bucks says this is never going to pass FDA testing in the United States... and we'll never find out why.

    --
    Rats would be more funny if they could fart.
    1. Re:Good old USA by MosesJones · · Score: 3, Insightful

      Which is actually fine as most people in the US can afford to pay for the drug or have the insurance anyway. I don't think that people in Africa are going to care too much that something doesn't have FDA approval if it is actually proven safe and proven effective by people such as WHO or the Red Cross.

      This isn't aimed at helping the USA, its aimed at helping the rest of the world.

      --
      An Eye for an Eye will make the whole world blind - Gandhi
  15. Re:fallacious by poopdeville · · Score: 2, Interesting
    1. Drug companies have to turn a profit; otherwise, they don't produce the drugs.

    False. Research can be done under the auspices of a non-profit organization or university, as was done in this case.

    2. The more money a drug company makes off a medicine, the more valuable it is. A drug company's profits are a function of how much people value that drug -- the drug's social utility (this is basic economics).

    Clearly false. An effective, cheap vaccine against HIV, say, would be far more valuable than all the Viagra in the world.

    3. Once the drug companies patents run out, anyone can produce generic medicines cheaply.

    Yes, after denying the public access for 20 years. Ever heard of the Hippocratic Oath? See: http://slashdot.org/comments.pl?sid=214714&cid=174 41208

    Funnily enough, you misinterpreted Professor Shaunak's quote. Here's some context from the BBC article:

    Currently, many of the scientific advances which eventually lead to effective treatments are developed within universities or by researchers working for charities, but that 'intellectual property' is then sold to pharmaceutical companies who bring the product to market.

    Professor Shaunak called for a different approach - for academic institutions to go into competition for cures with 'big pharma'.

    "We in academic medicine can either choose to use our ideas to make large sums of money for small numbers of people, or to look outwards to the global community and make affordable medicines."
    --
    After all, I am strangely colored.
  16. Re:the so-called "inventor's rights" are in fact . by AuMatar · · Score: 3, Informative

    Actually, copyright is specifically NOT a natural right in the US, although it is considered one in Europe. That was a major hangup in copyright treaties, until they agreed to disagree.

    --
    I still have more fans than freaks. WTF is wrong with you people?
  17. In further news... by Ritontor · · Score: 3, Funny

    Hoffman-La Roche and Schering Plough released a statement today. It reads as follows:

    "FUCK!"

    --
    Perhaps the answer to the problem of teenagers dropping bricks from motorway and railway bridges is to sue Tetris.
  18. Slashdot headlines by urbanradar · · Score: 4, Funny

    Looking at the Slashdot frontpage right now, among the stories I see are: "Researchers Work Around Hepatitis Drug Patent", "Wal-Mart Is Pushing Compact Fluorescent Bulbs", "Month of Apple Fixes", "MySQL Falcon Storage Engine Open Sourced", "Creating Prion-Free Cows". Maybe it's just my morning coffee making me optimistic, but it seems to me there's not usually this much positive news on Slashdot! Almost gives you hope for 2007, that does.

  19. Re:fallacious by bitkari · · Score: 2, Insightful

    You're unlikely to replicate the research large drug companies do in academia.

    The good folk at The Wellcome Trust might disagree with you there.

    And unlike purely commercial entities, and while they do commercialise some of their efforts, they aren't trying to extract as much profit as possible like Pfizer, GSK, AstraZeneca are.

    Bottom line: Drug companies have to make a profit. They have to recover costs

    Drug companies DO have to make a profit, but to say that this is to recoup their R&D costs is a little naive. These companies must return a substantial profit for their shareholders. R&D is simply a means to an end, and that end is shareholder value.

    Non-profit entities (as nicely detailed in TFA) are quite able to make great advances in medical science without the requirement for profit.

    Pharmaceutical companies could then strive to manufacture these "open" drugs in as an efficient way as possible, in an effort to compete with other manufacturers. This competitiveness would give us, the public cheap, quality drugs, and allow the manufacturing companies to make a profit.

    This is capitalism as it should be. This is medicine as it should be.

  20. NICE!!!!!! by Rooked_One · · Score: 2, Interesting

    I've undergone pegaylated interferon treatment twice now... didn't work for me, however did for my brother, and you have to have AWESOME insurance to cover this stuff. I doubt the side effects (which are 11 months of hell) are any different, but if it was cheaper, and for the people who relapse when the drug does keep the virus in check, but comes back, this would be great. After the treatment I felt so good for the couple of months that the viral levels were low... I've been hoping for a prophylactic kind of treatment for a long time... I really hope the pharmco's aren't assholes about something like this.

  21. Re:Medical patents don't spur innovation by BCoates · · Score: 2, Insightful

    Claiming "medical patents spur innovation" isn't the same as claiming that "there would be no research at all without medical patents".

  22. Re:fallacious by nagora · · Score: 2, Insightful
    Large profits give drug companies an incentive to develop the most useful medicines (the more profit, the more useful it is)

    You have perfectly summed up why drug companies spend most of their time (and budgets) on fleecing rich people instead of curing poor people.

    While you can make the argument that a specific drug X or Y would still be developed in the absence of profit motives, this is overlooking the fact that reduced profits mean a reduced incentive to produce drugs in the future.

    Reduced profits is not "no profits" and the incentive of having to compete would in fact be a much greater push to produce new drugs once the artificial protection period of the patent was removed.

    Your argument makes the incorrect assumption that drug companies want to cure disease. They do not; quite the reverse, in fact. They can't make money off healthy people.

    TWW

    --
    "Encyclopedia" is to "Wikipedia" what "Library" is to "Some people at a bus stop"
  23. Re:fallacious by Znork · · Score: 2, Insightful

    "Large profits give drug companies an incentive to develop the most useful medicines"

    No. A monopoly give drug companies a large incentive for marketing. And fails to give drug companies appropriate market incentive for efficiency. 80% of pharma revenue is spent on marketing, administration and inefficient production. The R&D is just a necessary evil to obtail the particular monopoly necessary; witness the classic twist-a-molecule game to gain another 20 years monopoly with minimum investment and minimum improvement over current drugs (coincidentally, the particular game that is turned against the pharmaceuticals in this case).

    "Look at it this way: What's better -- not having a drug at all, or having the drug be very costly for about 14 years and then having cheap generic equivalent?"

    How about this alternative: having _five times_ the current amount of medical R&D and no pharma marketing at no increase in cost, or the same R&D but at a fifth of the cost and no pharma marketing?

    Monopolies are a crap way to create any way or form of efficiency. The IP sector is no different from any other sector; protect companies from competition and you get bloated inefficient organizations capable of wasting unlimited amounts of funding and revenue.

    Of course you'll see those bloated corporations claiming the monopoly is necessary; for their current level of inefficiency it _is_ necessary. However, that inefficiency itself isnt necessary, and a free market situation would force them to correct it, while leaving us free to more appropriately steer money into R&D.

  24. Re:fallacious by janek78 · · Score: 3, Interesting

    Could you clarify that about treatment for stomach ulcers? I thought that omeprazole was already off patent (we have 11 brands available here in the Czech Republic). The cost of treatment for omeprazole is about $0.33 to $1 a day here. It is usually given for 6 weeks, so the total cost is something up to $40. And it actually compeletely cures the ulcers! Wow! Amazing.

    I suggest you go back freshen up a little before you come preaching here.

    And YES, I am a fucking doctor and no I don't have any shares of pharma companies. :)

  25. See? by Digital+Vomit · · Score: 4, Interesting

    See? Patents do encourage innovation!...by forcing others to work around existing patents. :-P

    --
    Modern copyright is theft of culture from everyone and it retards the progress of the useful arts and sciences.
  26. Re:$1,000 per capsule. by phayes · · Score: 2, Informative

    I have little sympathy for big pharma but sometimes the high price can be justified. When Taxol was determined to be a promising cancer treatment it's only source was from harvesting the bark of the pacific yew tree. As Taxol was only present in minute quantities in the bark, you needed to sacrifice hundreds of trees to obtain enough Taxol for a single treatment, thus Taxol was extremely expensive. They have since come up with methods of synthesising taxol from precursors in the needles which has allowed them to avoid sacrificing the tree and thus increase production, but it will remain a very expensive drug until they find a reliable means of synthesising it from a more common/inexpensive source.

    --
    Democracy is a sheep and two wolves deciding what to have for lunch. Freedom is a well armed sheep contesting the issue
  27. Re:$1,000 per capsule. by Quiet_Desperation · · Score: 4, Interesting

    Are you sure it was really $1000? That's $365,000 a year. The most expensive currently marketed drug is Cerezyme at $175,000 a year, and that's for some weird genetic disorder that only, like 5000 people on the planet suffer from.

  28. 15% to research, 85% to other stuff by Christian+Engstrom · · Score: 2, Insightful
    what do you think the ratio of new drug research is to profits? For a major drug company? Conversely, what do you think the ratio of marketing vs profits? Got a clue? No? Feel free to go do a little googling.
    In case the grandparent poster is Google impaired - a condition that medical science has yet to find a cure for ;) - I'll be happy to supply some links:

    Here are the Financial Highlights from the annual reports of Novartis, Pfizer and AstraZeneca. They all spend around 15% of their revenues on research. The number is typical for the industry. The other 85% go to other things, according to their own figures. More than half their revenues are spent on marketing and profits.

    So the standard argument for granting patent monopolies and allowing the pharma companies to charge whatever they want for the patented drugs - that they spend the excess revenues on research for new drugs - is simply not true.

    The organization Doctors Without Borders gives an example of how pharmaceutical patents affect prices i a recent press release:

    The case of AIDS illustrates the trend. While fierce generic competition has helped prices for first-line AIDS drug regimen to fall by 99% from $10,000 to roughly $130 per patient per year since 2000, prices for second-line drugs - which patients need as resistance develops naturally - remain high due to increased patent barriers in key generics producing countries like India.
    In this particular case, the price with patents was a hundred times the price without patents. How can 15% spent on R&D justify a markup by 10,000% on the final product?

    To the western world, pharmaceutical patents mean an enormous waste of money. In the third world, it's lives that are wasted instead. It's time to think about an alternative.

    And alternatives exist - plenty of them, in fact. Nobel prize winner Joseph E Stiglitz has made one proposal. The Swedish Pirate Party has made another (or essentially the same, actually). Economist Dean Baker has collected four others, that also run along the same lines.

    It's time to open up a global discussion about the effects of pharmaceutical patents, and the alternatives. Today's system is not only grossly immoral, it is also expensive and wasteful. It's time for a better way. Pharmaceutical patents kill.

    --
    Christian Engström, Former Member of the European Parliament 2009-2014 for The Pirate Party, Sweden
  29. wrong by oohshiny · · Score: 2, Informative

    Patents are simply recognizing the inventor's right to say, "I'll show you how to do X if you promise to do Y."

    Unlike physical property, the Constitution does not recognize the existence of intellectual property or any other intrinsic rights to ideas or inventions.

    Therefore, patents create that right, they don't recognize it. And they create that right only temporarily, only for a very limited set of ideas, and only if the inventor actually lives up to specific requirements.

    In contrast to physical property, the only generally recognized ethical obligation people have with respect to ideas is that they have to attribute them correctly.

  30. Re:Promotes diversity in medicine by The+Rizz · · Score: 2, Interesting

    If it wasn't for patents, what would drive people to look for alternate treatments ?

    I dunno ... maybe the idea that there are possibly better treatments that could be discovered? Ones with less side effects, that work faster, that work for people that the known treatments don't, or perhaps even ones that have a lower production/materials cost?

  31. Re:$1,000 per capsule. by wallet55 · · Score: 2, Informative

    I agree, this would require some specifics to be believable. However, it does get to a truth: drugs can be very very expensive. There are multiple reasons, some of them not obvious. First and foremost, disease populations (ie the drug's customer base) are being split by the more accurate subclassification genomics is affording medicine. This means that a cure for any newly more specific disease is for fewer and fewer people. When you take the higher and higher costs of developement and testing, add in the overhead produced by failed research efforts (the majority), and less time left on the patent (because it takes so long to get it to approval) you have to run the price up even further. There are no brakes on this whole process because right now, even with HMO's, we still pay whatever it takes.

  32. Re:fallacious by balloonhead · · Score: 2, Interesting

    You're really a fucking pharmacist? You don't seem to actually have much concept of the way things work.

    Stomach ulcers have a cure. In some people. Those with helicobacter. And it's not just an antibiotic - it's three drugs (amoxicillin, metronidazole, and a PPI of your choice - let's say omeprazole. You mention a mineral (presume you mean bismuth?). There are a few different treatment regimens available, some with differences. I believe you can even get them as one pill with all the drugs in. Usually a week's course.

    However, that doesn't address:
    1. people who don't respond to this first treatment, or the second line treatment, or anything.
    2. people who have non-infectious ulcers
    3. people who have 'acid indigestion' - a myriad of diagnoses from oesophagitis, reflux, candida, and gastritis to functional dyspepsia (also called 'we don't have a diagnosis, but we've ruled all the treatable ones out, so w'll just treat your symptoms').

    And the drug companies love it because they can market 'new' drugs from old, cheap generics (i.e. package them as one treatment, put it in a fancy box - they're not going to make much money off those same drugs otherwise).

    Now, dexamphetamine is still a very popular drug for ADHD. I won't even go into how marketing directly to the parents causes overprescription as they demand that as it had the best glossy ad in their lifestyle magazine. Or how the condition is totally overdiagnosed by a society that is forgetting how to look after its kids (try it a hundred years ago, with no TV to babysit them while they eat their preservative laden dinner, before 4 hours of playstation then bed at 2am).

    (PS to the indignant parents of ADHD kids - your little precious may or may not be 'real' ADHD. That's not my point. The sad fact is it's becoming a diagnosis of convenience for shit parents).

    Anyway - I digress. There are a number of other holes in your statements (some of which have already been addressed by another physician) but in future, try to at least have a bit of knowledge about what you are talking about. I certainly don't believe you are a pharmacist, unless you trained a long time ago and never kept current.

    --
    This idea was invented by Shampoo.
  33. Re:fallacious by orasio · · Score: 2, Insightful

    The money has to come from somewhere. That somewhere is usually from profits from drugs. And as I said earlier, profits are an indication of social utility -- how much people value the drug. The more profits, the more people value the drug. The larger the profit, the more good the drug does, and the more incentive to produce that drug (which is why capitalism is pretty cool). Capitalism has some cool things. This is exactly where it fails.
    You are counting people as equals. You equate amount of money invested with people that benefit. That is just not true, specially in a capitalistic society.

    If your reasoning had any logic, then casinos would be more valuable for society than hospitals, because there's more money invested into them.

    The most money, globally, is overrepresented for rich people problems, like cancer and alzheimer. Globally, the most short term benefit for people as a whole would be acheived if that money was invested (as an example) into _cheap_ vaccines for AIDS, and other infectious diseases.

    The bias is set by concentration of wealth, and while it is the way things work and we should deal with it, it is a flaw in the system.

    Of course, the same thing happens in a less obvious fashion, inside developed and underdeveloped countries.
    Pharma companies get patents granted , and then the governments that granted them, are not able to pay for proper treatment for their citizens.

    If governments in general spent their money into funding research instead of paying for already invented medicine, there is no reason to believe, a priori, that the outcome would be worse than the current (bad) situation.

    Of course, it is more obvious in the third world. There is little natural incentive to honor foreing patents, and that is why trade agreements that protect "IP" are so important for the US and the EU.

    The issue is very similar to the proprietary software vs free software thing. The same thing was argued, back in the day, that big software could not be developed without funding, and the promise of future profit from licenses. That was proven to be non true. I'm really hoping something like that (not the same, but a system that shares some fundamentals witht he FSF) happens in the pharma industry. I think it could happen.
  34. Re:a couple of things to keep in mind by Overzeetop · · Score: 2, Insightful

    You could save half of the development costs upfront, as pharma companies already spend more on marketing than on research and development. BTW - only a small fraction of that money goes to the commercials you see - most comes from the armies of representatives that ply doctors offices with samples, notepads, pens, junkets, and other freebies. And it works - they doctors get the dog and pony show, and even if they don't take the free trips/tickets/gifts, they remember the sales pitch.

    I happen to be suceptable to sinusitis, and twice in the past (when under full healthcare) I have been given Augmentin, then later Augmentin XR when it came out. A 10 day treatment, I found out once I switched to a high-deductible plan without a pharm co-pay, runs about $300. Now, it turns out that Augmentin is just a large-dose amoxicillin with a bit of clavulanic acid, a beta-lactamase inhibitor, which is added to extend the life of the amoxicillin. This winter I ended up with sinusitis following a mild head cold, and sucessfully treated it (with the doctor's permission) using a 14 day course of equivalent-dose amoxicillin. For $10. The previous physician had the big sell on Augmentin, and since it was "better" and most doctors don't keep up on drug costs the latest and greatest was prescribed. This is small change when you look at bigger, long-term drugs, but is indicative of the effect of the one-on-one marketing, and the return.

    --
    Is it just my observation, or are there way too many stupid people in the world?
  35. Re:fallacious by Daetrin · · Score: 2, Insightful
    I've seen hundreds of commercials for antacids but this is the first time i've ever heard of an actual _cure_ for ulcers. As a doctor you may know about more effective treatments or even cures for any particular problem, but i don't think that in itself negates the grand-parent's argument that whenever possible treatments are what is pushed by pharma marketing departments, not cures, and if possible they'd rather sell a more expensive patented treatment than a cheaper generic one.

    And YES, I am just a normal guy with no medical training whatsoever.

    --
    This Space Intentionally Left Blank
  36. Re:the so-called "inventor's rights" are in fact . by Da_Weasel · · Score: 2, Insightful

    Creative thinking, observing things from a unique perspective and hard work is what leads scientist to these discoveries. Saying that these discoveries are simply a matter of putting a few more bricks on an existing wall and that someone else eventually would have done this anyway is an insult to the discoveries of the scientific community.

    Harry Potter built on a wealth of previously existing literature about wizards and magic, but that doesn't cheapen it in anyway...

    Just because you don't see the artistic, creative beauty of science doesn't mean that it doesn't exist. Things that are systematic and functional can also be artistic.

    --
    If you must!
  37. Re:the so-called "inventor's rights" are in fact . by FallLine · · Score: 2, Interesting
    Actually, copyright is specifically NOT a natural right in the US, although it is considered one in Europe. That was a major hangup in copyright treaties, until they agreed to disagree.
    Besides the fact that this is really a philosophical debate now, many of the so-called "natural rights" have drifted too, there is considerable debate about this in the US today. Though Jefferson was clearly influential in advocating the view that IP is mere social contract, this was not the predominant view of the time. Try reading this paper before presuming that all people who think otherwise are idiots. Many people want to take a very selective view of history by saying that the courts were right in taking a less expansive view of IP rights, but that they're wrong now that it is drifting in the other direction.

    It is also worth keeping in mind that patents and copyrights have important diferences. A strong copyrights has little chance of colliding with the rights of others to create independently whereas a strong patent necessarily demand significant breadth and these create a significant chance of interfering with independent invention (or at least creates the opportunity for someone to make a credible claim). I support strong patent rights, but I can accept a more nuanced view of these than I can copyrights.