Business Ethics in Nanotechnology

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Evergreening

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Business Ethics in Nanotechnology

Definition

Evergreening is a strategy employed by pharmaceutical companies to extend the lifespan of a patent beyond its original term by making slight modifications to an existing product. This practice often involves minor changes in formulation, delivery methods, or combinations with other compounds, allowing companies to maintain exclusive rights and delay the entry of generic competitors into the market. It raises ethical questions regarding innovation, competition, and access to medicines.

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5 Must Know Facts For Your Next Test

  1. Evergreening allows pharmaceutical companies to maintain market exclusivity and high prices for extended periods, potentially limiting access to affordable medications.
  2. The strategy is often criticized as it may stifle genuine innovation by focusing on minor improvements rather than significant advancements in drug development.
  3. Countries have different laws regarding evergreening; some have specific regulations aimed at curbing the practice to promote generic competition.
  4. Evergreening can lead to prolonged patent wars where companies engage in legal battles over small modifications rather than creating new drugs.
  5. The practice raises ethical concerns about balancing the rights of inventors with the public's right to access affordable healthcare solutions.

Review Questions

  • How does evergreening impact competition in the pharmaceutical industry?
    • Evergreening impacts competition by allowing companies to extend their patent protections through minor modifications to existing drugs. This can prevent generic versions from entering the market for longer periods, which stifles competition and keeps drug prices high. Consequently, patients and healthcare systems may face higher costs due to the lack of affordable alternatives.
  • Discuss the ethical implications of evergreening on access to medicines for patients.
    • The ethical implications of evergreening revolve around access to essential medications. By prolonging patent protections through minimal changes, companies can maintain higher prices for longer periods, which can limit patients' access to affordable treatments. This raises important questions about whether profit motives should take precedence over public health needs and how to balance innovation incentives with equitable healthcare access.
  • Evaluate how different countries approach evergreening in relation to their pharmaceutical policies and what this means for global health.
    • Countries adopt various approaches to evergreening based on their pharmaceutical policies, impacting global health significantly. Some nations have stringent regulations to prevent evergreening practices that inhibit generic drug entry, promoting access to affordable medicines. Others may allow such strategies, prioritizing innovation protection for domestic industries. This discrepancy leads to unequal access to medications worldwide, as some populations face higher barriers due to prolonged patent protections while others benefit from more liberal policies that facilitate generic competition.
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