Analyzing Pharma: Pricing, Patents, Profits - A Marketing Insight

This case study examines the pharmaceutical industry's approach to pricing, patents, and profits, highlighting the tension between patent rights and accessibility of medicines, especially during epidemics. It explores the role of pharmaceutical companies, the impact of patenting systems, and the challenges of balancing cost of production with customer needs. The analysis covers the disadvantages of the patenting system, particularly during health crises when patients struggle to afford essential drugs. It also addresses the potential risks of abolishing the patent system, such as reduced funding for research and development. The reflection emphasizes the need for pharmaceutical companies to balance patenting with fair pricing, considering the public's perception and the importance of ensuring patients can access necessary medications. Ultimately, the study underscores the complex relationship between pharmaceutical companies, intellectual property, and public health.

Running head: MARKETING
Marketing
Name of the Student:
Name of the University:
Author’s Note:

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Key findings from the case
 The pharmaceutical companies or the medicine producing companies often feel that
patent rights will help them in the long run
 Patent rights often help in giving monopoly power to the medicine markets.
 Patenting process does not always work with the pharmaceutical companies. This is
evident from the breaking out of the epidemics where patients suffer due to the price of
the medicines.
 This problem was also seen during the breakout of AIDS. It was seen that even in the
most advanced countries people were unable to afford the medicine. This is really very
undesirable (Duggan, Garthwaite and Goyal 2016).
 Pharmaceutical companies have to work hard so that they can actually balance their cost
of production and benefit their customers as well.
How the relevant "chapter concept topics" related to the case
 The introduction of the case talks about the role that has been played by Pharmaceutical
companies over the years
 The case against the pharmaceutical industry is a topic that deals with the disadvantages
that have been taking place due to the patenting system.
 This gives an insight into the times of epidemics when patients could not pay the high
price of the medicines.
 The case for the pharmaceutical industry talks about the risks it might run if the patent
system is abolished

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 Abolishing patenting system would greatly reduce the funds they get to spend on the
cancer researches or other medical researches every year.
 Controlling price would also hamper the R&D department a great deal
 Thus, pharmaceutical companies need to strike a balance between the patenting and
setting the right price for products.
Overall learning reflection
 I have learned that if drugs are made price sensitive then it will turn out to be a huge
problem for the patients. Patients will not be able to afford drugs that are priced at a very
high level.
 Drugs are not priced sensitive as there is a kind of contract between the pharmaceutical
companies (Brennan et al., 2016). They have a contract that they will be providing the
cure to their patients.
 Drugs bear no relation to the price because if these price controls were introduced, it
would make the companies reduce the amount of money that they spend on their research
purpose.
 If drugs are made price sensitive then it will turn out to be a huge problem for the
patients. Patients will not be able to afford drugs that are priced at a very high level. They
will be suffering from diseases without being able to afford medicines.
 The Pharmaceutical companies mainly work for making the lives of the patients easier.
However, companies know that the power of the public is huge in this aspect. Thus, they
often reduce or rather alter the price based on the opinion of people.

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 The main idea of patenting is to provide monopoly power to the companies that would help
them in selling their products for a certain patented time period. However, there are cases
where the opposite had been seen.


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References
Brennan, H., Kapczynski, A., Monahan, C.H. and Rizvi, Z., 2016. A prescription for excessive
drug pricing: leveraging government patent use for health. Yale JL & Tech., 18, p.275.
Duggan, M., Garthwaite, C. and Goyal, A., 2016. The market impacts of pharmaceutical product
patents in developing countries: Evidence from India. American Economic Review, 106(1),
pp.99-135.