Analysis of Correlation between Patent Protection and Price of a Pharmaceutical Product

Patent protection is a form of protection that gives the owner of the patent a right for making, using or selling a concept or an innovation and excludes others from doing the same thing for the duration of the patent. The present project deals with the correlation between the patent protection and its pricing. This study will deal with the pricing of the pharmaceutical products with respect to the patent protection. According to the TRIPS agreement, the World Trade Organisation member should be bound to implement these patents for pharmaceuticals. Several low-income countries contend that pharmaceutical patenting might result in a large increase in medicines rates, with detrimental health and welfare effects for their population. In contrast, world pharmaceutical firms based on research say that costs are unlikely to increase substantially because most of the patented medicines have therapeutic supplants. The pharmaceutical demand structure is very different in impoverished nations when nearly every medical cost is covered by such uncommon health insurance. The dynamic prices here will be emphasized upon.