[Ip-health] Re: impact of the HIF on generic industry in developing countries

Thu Nov 20 07:31:00 2008

Dear Jamie,
Thanks for your question. We expect the HIF to have approximately zero
impact on the generic drug industry. It would reduce barriers to competition
at the end of the reward period of ten years, by requiring open licensing of
all outstanding patents required for the manufacture and sale of the
registered product at that time. This would of course reduce litigation
costs in those markets where litigation occurs, which would benefit generic
manufacturers. The HIF could result in decreased sales of some generic
medicines if there were cheaper and better HIF-registered drugs available at
low prices, which could harm generic manufacturers. (Of course, in the
latter case, consumers would benefit.) Generic firms might also benefit from
increased opportunities for contract manufacturing of HIF-registered drugs.

It bears repeating that the HIF is intended to be complementary to other
mechanisms for increasing innovation and increasing access. To the extent
that, in the book, we recognize the shortcomings of other mechanisms, that
is not intended as a claim that those mechanisms are worthless, but that,
like all mechanisms including the HIF, they are incomplete and imperfect.
Our hope is that the HIF can be a complement which meaningfully improves
outcomes by increasing the set of mechanisms. The idea, which you have been
promoting, that the HIF proposal is an attack on compulsory licensing or the
Unitaid patent pool, is quite erroneous.  The Unitaid patent pool could be a
very useful mechanism for increasing access to important medicines, and we
have only positive discussion of it in the HIF book (see page 100).
Similarly, compulsory licensing has a role, as you will find I have
expressed in my own published research specifically on that topic. Thomas
has also publicly expressed support for the right of states to use
compulsory licensing ( eg
http://www.cptech.org/ip/health/c/thailand/riceschwabthailand21dec06.pdf).

Finally, for readers who are learning about the HIF through this exchange,
you main gain a fuller understanding of the HIF proposal by visiting
www.healthimpactfund.org. The e-library there features a short summary as
well as a book-length exploration. And the events pages provide information
about forthcoming workshops and discussions with members of the HIF team.

With kind regards,
Aidan Hollis

Associate Professor
Department of Economics, University of Calgary
2500 University Dr NW Calgary AB T2N 1N4 Canada

tel: +1 403 220 5861  fax: +1 403 220 5861
email: ahollis@ucalgary.ca
web: http://econ.ucalgary.ca/profiles/aidan-michael-hollis

Aidan Hollis

Associate Professor
Department of Economics, University of Calgary
2500 University Dr NW Calgary AB T2N 1N4 Canada

tel: +1 403 220 5861  fax: +1 403 220 5861
email: ahollis@ucalgary.ca
web: http://econ.ucalgary.ca/profiles/aidan-michael-hollis

Incentives for Global Health
http://www.healthimpactfund.org
----- Original Message -----
From: "James Love" <james.love@keionline.org>
To: "Ip-health" <ip-health@lists.essential.org>
Cc: "Thomas Pogge" <thomas.pogge@yale.edu>; "Aidan Hollis"
<ahollis@ucalgary.ca>
Sent: Wednesday, November 19, 2008 2:15 PM
Subject: impact of the HIF on generic industry in developing countries

> Dear Thomas and Aidan,
>
> Have you or will you predict that impact of the HIF on the generic
> industry in developing countries, in the event that the HIF is
> implemented as you suggest?
>
> Jamie
>
> --
> James Love, Director, Knowledge Ecology International
> http://www.keionline.org | mailto:james.love at keionline.org
> Wk: +1.202.332.2671 | US Mobile +1.202.361.3040 | Geneva Mobile
> +41.76.413.6584
>
>
>