Resolving Dysfunctional Pharmaceutical Arbitrage and Counterfeiting Through the Proposed Hubbard-Love R&D Treaty

10 Pages Posted: 18 Nov 2004

Date Written: November 15, 2004

Abstract

One obstacle to the widespread rollout of compulsory licensure or greatly expanded access to essential pharmaceuticals is the fear that drugs intended for the poor will be diverted into high income markets, undermining pharmaceutical profits and ultimately, pharmaceutical R&D. In fact, this form of dysfunctional pharmaceutical arbitrage is rarely observed. A much greater threat to both pharmaceutical profits and public health is the production and sale of counterfeit drugs. The proposed Hubbard-Love R&D Treaty would eliminate the threat of dysfunctional arbitrage and dramatically reduce incentives to counterfeit.

Keywords: IP, IPR, intellectual property, parallel trade, pharmaceutical arbitrage, counterfeit, pharmaceutical, drug, essential medicines, access, R&D treaty, innovation, diversion

JEL Classification: H41, H51, I18, K11, K19, K32, K33

Suggested Citation

Outterson, Kevin, Resolving Dysfunctional Pharmaceutical Arbitrage and Counterfeiting Through the Proposed Hubbard-Love R&D Treaty (November 15, 2004). Available at SSRN: https://ssrn.com/abstract=620367 or http://dx.doi.org/10.2139/ssrn.620367

Kevin Outterson (Contact Author)

Boston University School of Law ( email )

765 Commonwealth Avenue
Boston, MA 02215
United States

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