[Ip-health] Speech by Pfizer CEO McKinnell on Pharmaceutical Research in India

[Mike Palmedo]

http://timesofindia.indiatimes.com/articleshow/1535826.cms

Stifling research

Henry A McKinnell
Excerpt from speech given in Bangalore
May 18, 2006

When people speak about "industries of the future", they must include an
industry of today medicine and biomedical science. Many analysts believe
that we are on the verge of a golden era in medical advances, making
more progress in the next two decades than was made in the past two
millennia.

India can be a powerhouse in this emerging golden age of medicine. The
path forward has already been illuminated by India's rapid expansion in
another "industry of the future" information technology.

The rise of the IT industry in India capitalised on the nation's unique
"brand" high-quality intellectual power at modest cost. But this rise
didn't happen by accident. It was enabled by a bold move on India's part
strengthening of laws protecting rights of software inventors.

But when it comes to another industry heavily dependent on human
brainpower pharmaceutical research India is still missing out. Many of
the best biomedical graduates from Indian universities travel to America
to work.

Those pharmaceutical scientists who stay in India are largely limited to
making copies of other companies' innovations, or working as low-cost
suppliers to the world's research-based pharma companies.

What keeps India's scientists from blazing many more new trails in
biotechnology, chemistry and pharmaceutical science? The answer lies in
India's approach to protecting the intellectual property that comes with
discovery and development of new medicines.

India has insufficient legal guarantees that inventions, including novel
medicines, will be protected from unauthorised copying and export.
Moreover, there is reasonable doubt about the sustained enforcement of
existing laws.

Some 80 per cent of the market value of Pfizer and other research-based
pharmaceutical companies is represented by patents and other
intellectual property.

Every medicine Pfizer puts into the hands of doctors and patients is the
result of 10 to 15 years of R&D by thousands of skilled scientists. Any
weakness in the law, or any reluctance by national authorities to
enforce the law, would have a chilling effect on biomedical innovation.

India has made inroads in protecting patents and intellectual property.
It's time to go further to strengthen the basic patent law, clarifying
it, and closing its loopholes. Such a move would ignite a virtuous
cycle, cementing India's place in the coming biomedical revolution.

I understand the concerns that India's government and citizens have
about strengthening IP protection for pharmaceuticals. Some believe that
stronger patent laws here would put medicines out of reach for even more
people than the 65 per cent of India's citizens who don't have access
now to modern medicines.

People in need should get the medicines they need. And good patent law
would have provisions to override a patent in the event of a national
emergency. The bar for government intervention, however, is set too low
in India. It should be set at a level that stimulates innovation and
guarantees access in the event of a medical emergency.

Moreover, virtually all medicines on the WHO Essential Medicines list
are already off-patent in India, and widely available as generic
commodities. Ultimately, the answer on how best to protect IP lies in
the vision India has for its pharmaceutical and biotechnology industries.

If India is satisfied being the world's generics maker, or being a
low-cost supplier to those who add value up the line then the current
laws favour that role. If the vision is an Indian pharmaceutical and
biotechnology industry that is much more vibrant, compelling, and vital
to global health then change is in order.

There are those who say that only foreign companies like Pfizer will
benefit from stronger, clearer intellectual property laws.

We answer that ultimately, this is about the 'rules of law' that India's
research-based pharmaceutical companies will need if they want to move
ahead in research and take a place in this growing biomedical revolution.

The writer is chairman and CEO, Pfizer Inc. Excerpted from a talk at
IISc, Bangalore.