PHARMACEUTICAL INVENTIONS, M&A AND FDI: NEED FOR A RIGHT BALANCE TO GAIN ACCESS TO MEDICINES

Abstract

Invention coupled with proper protection of creation through globally accepted Intellectual Property
Law has helped growth of many branches of technology like Telecommunications technology,
Information technology, Security systems, Education sector, Banking & Financial sectors and
Pharmaceutical sector. The article concentrates on the growth in pharmaceutical sector. The inventor
of new medicine gets the patent rights for 20 years in which he can reap economic benefits out of it by
enjoying monopoly over the invention. The monopoly right has been granted with a caution that if the
right is misused then it can be taken back by granting compulsory license to others and thus curtailing
his right, by TRIPS agreement and later on affirmed by Doha Declaration. But still it has been meagerly
used. The article examines the effect of M&A of generic drug producing companies on the prices of
drugs, in the light of 100% FDI in pharmaceutical sector.