Patent extension review
October 16, 2012
THE Parliamentary Secretary for
Industry and Innovation has
announced a Government review
into the appropriateness of the
extension arrangements for
pharmaceutical patents.
"In certain circumstances,
pharmaceutical patents can be
extended by up to five years
beyond the normal patent term,
Dreyfus said, adding that “these
provisions were introduced back in
1998, and are due for review".
Addressing the need for the
review Dreyfus said that concerns
had been raised about a number of
aspects of pharmaceutical patents,
including bringing generic
pharmaceuticals to market and the
effect of patent terms on
innovation.
According to Dreyfus the review
will look at issues that impact on
competition in the pharmaceutical
industry, for example, the ability of
generic medicines to enter the
market; issues around fostering
innovation and bringing new
pharmaceuticals to market; and the
importance of the patent system in
providing employment and
investment in research and industry.
The review will also consider the
impact of pharmaceutical patent
provisions on Government health
expenditure; the impact on the
Pharmaceutical Benefits Scheme;
international approaches to
extensions of term for
pharmaceutical patents; Australia's
obligations under international
agreements (including free trade
agreements and World Trade
Organisation agreements); and
Australia's position as a net
importer of patents and medicines.
The Review is set to be Chaired by
Tony Harris, and will include two
other members: Dr Nicholas Gruen
and Professor Dianne Nicol.
MEANWHILE the review has been
welcomed by the Generic
Medicines Industry Association,
which said the move was both
important and timely.
“Market exclusivity must only be
provided for truly innovative
medicines,” GMiA said in a
statement.
“Given the regulated nature of
the pharmaceutical market, it
is imperative that the legal
framework support appropriate,
timely and efficient market
entry of follow-on generic
medicines,” GMiA added.
In addition GMiA argued that
patents play an important role in
encouraging innovation of new
pharmaceuticals.
“The patent system should not
support trivial patents that extend
market exclusivity to products that
do not deliver a health benefit,”
GMiA said.
“Granting of weak patents
restricts innovation, competition
and diffusion of knowledge
AND unnecessarily increases the
cost to the public,” GMiA added.
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