Forefront | Blog
Forefront 2018 – Issue 2
This quarter’s Forefront focuses on intellectual property and specifically the generic drug market. We are currently working with a bio med company in the early stages of drug development in the diabetes area. The patent litigation costs, first to protect what has been filed, then to defend against expiring patents is substantial. Eventually as patents expire, the generics take over and quickly become 90% of the market. The ability for a drug maker to delay the inevitable has value in the short run. We are currently exploring the size of the advantage of being the first generic in. Studies have been done to show, not unlike other industries (casinos come to mind), that there is a first lure advantage. Under the premise that once doctors and pharmacists start recommending generics, how many do you need to have, the first entry has value. We are starting to study in what areas of medicine (diabetes, blood pressure, cholesterol, etc.) is this advantage distinct. The analysis we hope will assist drug makers in perhaps partnering with generics to grab a portion of the advantage of first lure. The value if quantified, may allow both parties (drug maker and generic) to partner in a financially economic way. We are assessing whether there is a quantifiable economic advantage. At the end of the day, if you are going to have a meaningful negotiation, knowledge is power. – Patrick O’Keefe
