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GSK adopts graduated approach to patenting

101714415-180116753.530x298GlaxoSmithKline UK has announced it will adopt a graduated approach to patenting its medicines, depending on the wealth of different countries.

Britain’s biggest drugmaker will not file patents for its drugs in the world’s poorest countries, clearing the way for generic companies to make cheap copies, chief executive Andrew Witty said. But it will continue to seek full patent protection in richer parts of the world.

For lower middle income countries, GSK will seek patents, but it aims to strike licence deals that allow supplies of generic versions of its medicines for 10 years. These licences are expected to earn GSK a “small” sales royalty.

GSK also intends to give its competitors an access to its intellectual property through the UN-backed Medicines Patent Pool.

The company sold its established cancer drugs to Novartis in an asset swap that closed last year. It is still working on a number of experimental immuno-oncology and epigenetic cancer therapies.

The drugmaker’s actions mark the latest initiative by the pharmaceuticals industry to address criticism that many new drugs are simply too expensive for billions of people in Africa, Asia and Latin America – often where they are most needed.

The wider industry has increasingly adopted a policy of tiered pricing for poor countries, but the decision to waive patent rights in certain areas goes a step further in opening the door to competition.

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