China’s Compulsory Licensing For Patented Drugs Brings Little Cheer To Local Firms
This article was originally published in PharmAsia News
Executive Summary
China's latest patent law, which allows the government to issue compulsory licenses on patented drugs (PharmAsia News, Dec. 29, 2008) will have limited impact on local pharmaceutical companies, according to industry analysts. Although the new rule may benefit suppliers of raw drug materials, the government will not lightly activate it unless a major disease epidemic or war occurs, said Yu Ming-De, vice president of China Pharmaceutical Enterprises Management Association. China currently has more than 20 companies exporting raw materials for anti-HIV drugs, including Hisun Group, Huahai Pharmaceutical, Northeast Pharmaceutical Group and Mchem Pharma Group. Locally-made formulations still need FDA's cGMP or EU COS certification to be exported. Furthermore, generic drugs with compulsory licenses will not earn big profits if they are purchased through WHO for specific countries or regions. (Click here for more - Chinese Language)