Developing countries have opportunity to attract investment, report says
UNCTAD says these countries can benefit from Big Pharma ties with generic manufacturers
The poorest countries in the world have an unprecedented opportunity to attract investment in the pharmaceutical sector, according to a report by the United Nations Conference on Trade and Development (UNCTAD).
The study stressed how large research and development-based global pharmaceutical companies facing the expiration of blockbuster drug patents are entering into partnerships with profitable generic manufacturers in developing countries as a survival strategy. And it said UN-classified least developed countries (LDCs) could benefit from this.
‘With the right set of policies in place, LDCs can use the local production of pharmaceuticals to help ensure greater access to essential medicines,’ the report said.
UNCTAD said its confidence in establishing plants in these countries had been boosted by the fact that developing countries must now also offer product patent protection under the World Trade Organisation Trade-Related Aspects of Intellectual Property (TRIPS) agreement. Because of this, manufacturers in these countries are increasingly producing patented medicines locally for developed-country markets while exploring manufacturing generic medicines off patent.
A number of LDCs, including Bangladesh, Ethiopia, Tanzania and Uganda, have already made significant gains in the local production of pharmaceuticals such as antimalarial and antiretroviral drugs for the treatment of HIV and AIDS.