Published Online:July 2024
Product Name:The IUP Journal of Applied Economics
Product Type:Article
Product Code:
Author Name:Sai Sailaja Bharatam, Aditi Kalluri and Sridip S Nambiar
Availability:YES
Subject/Domain:Economics
Download Format:PDF
Pages:10
The aim of intellectual property rights (IPRs) is to protect the rights of innovators, i.e., producers, while the goal of competition law is to protect the rights of end users, i.e., consumers. Therefore, an IP owner runs into conflict with competition law only in the event of a transgression in his capacity as an IP owner if such transgression distorts competition. The conflict between IPRs and competition legislation is still being discussed in the pharmaceutical sector. However, it is a scholarly imperative to evidence concentration before pitting one against the other. To determine how much of an industry’s total output is controlled by its largest companies, market concentration ratios can be measured in terms of sales. An economic factor that aids concentration by larger firms in an industry is economies of scale. This paper focuses on the available literature and data to model the economies of scale for bulk drug manufacturers in India. The present work estimates the four-firm concentration ratios of bulk drug manufacturers in India for analyzing the economies of scale. By analyzing the number of patents that are considered proxy for IPRs of firms, it is evidenced that the firms that concentrated the market are also the firms that hold active patents. Hence, it can be concluded that patents serve as positive externalities for firms in bulk drug manufacturing
Early in September 2022, Gambia’s health authorities began looking into possible connections between the use of a paracetamol syrup prescribed for fever, cough, cold, and pain, and the deaths of many children from acute kidney damage. By late July, doctors noticed a sharp increase in the number of cases of serious kidney damage in children under five, and they thought that these cases might be related to medications. According to Reuters, Mustapha Bittaye, head of health services in the African nation, numerous toddlers started experiencing kidney difficulties three to five days after ingesting a paracetamol syrup that was sold nearby. Kidney failure would ensue when the afflicted person had vomiting, fever, and difficulty passing urine. Figures from the Gambian Health Ministry show that by early August, 28 children had passed away, with a fatality rate of 90%. Four inferior products—items that “fail to meet either their quality standards or specifications”—were the subject of a medical alert released by the World Health Organization (WHO) on October 5. Promethazine Oral Solution, Kofexmalin Baby Cough Syrup, Makoff Baby Cough Syrup, and Magrip N Cold Syrup were the four cough syrup varieties. Maiden Pharmaceuticals Limited, Haryana, India, was listed as the product’s maker. The warning further stated that using the subpar products listed could “result in serious injury or death” since they were dangerous, especially when used by minors.