Oh-oh! China's new IP law allowing compulsory licensing of drugs under patent came into effect as of May 1, 2012. The revised law is called the Measures for the Compulsory Licensing for Patent Implementation and is expected to open the doors for low-cost generic versions of patented drugs. The law also allows export of these drugs to other countries.
China announced this move in a seminar last month. It seems to confirm that China's intent is to become a generic producer for the domestic and international market. Now we have both China and India issuing compulsory licenses.
Global drugmakers need to take heed as China already has many companies producing active ingredients for domestic and global suppliers. They can make generics and apparently will. With both India and China moving toward making more generic copies of patented drugs, this can't do anything but put more pressure on Big Pharma revenues. It looks like the pharmerging markets won't necessarily offer virgin territory to be mined by Western companies looking to gain compensory sales to make up for lagging sales in the West.
Posted by Bruce Lehr June 8th 2012