Their Prices And Patent Laws example essay topic

Case 2: Treating AIDS- The Global Ethical Dilemma BACKROUND: The majority of the worlds HIV / AIDS cases are found in Africa, Latin America and Asia. The vast majority of these people in these countries can not afford that drugs that help make AIDS a chronic disease rather that an early death sentence. The pharmaceutical companies are unable to reduce the prices of these drugs low enough for the people to afford them. The companies are also fighting to protect their intellectual property laws, which prevent their patented drugs from being copied into generic brands. The governments of Africa, Latin America and Asia are trying to find their own ways around the high prices and property laws, even if it means breaking the laws, to get their people the drugs they need.

ISSUE: Should the pharmaceutical companies change their prices and patent laws for these less fortunate countries? ANALYSIS: Yes, the companies should lower their prices and change their patent laws for inferior countries. For one thing, it would show that they have compassion for these people that are not as fortunate as our country. By lowering the prices, more people would be able to afford these drugs and the death rates in these countries would steadily drop.

Most of these companies sell their anti-AIDS drugs mostly to wealthy countries, so it should not be necessary for them to keep their prices so high. They should be more concerned with life than with their profits. Patent laws should only be between countries that are technological equals. Patent laws are designed with only national interests in mind, not international.

Each countries interest is different from one another. The pharmaceutical companies should allow the less fortunate countries to make their own generic copies of the AIDS drugs, since they are unable to afford the real ones, even when the prices were lowered. No, the pharmaceutical companies should not lower their prices or allow these countries to change the patent laws. By lowering their prices, the companies would risk suffering a loss. The companies invest a lot of money to develop these drugs. They are patented so that the companies can recoup their investment cost.

The managers of these companies also have the responsibility to maximize shareholder's wealth, and by lowering the prices they are unable to do this. They might have to raise the prices in their own country to avoid suffering a loss. This would upset their people. The pharmaceutical companies feel that if they cannot maintain their global patent protection, then their business will not survive. If they allow these countries to ignore their patents, other countries will want the same privilege. Generic copies will start being manufactured and sold at a cheaper price.

There will be no need for the original drugs and the pharmaceutical companies will be unable to sell their drugs in these companies. This will cut from their profits and affect their investments in the future. CONCLUSION: I don't think that the pharmaceutical companies should give special privileges to these countries. Ninety percent of the world's 33 million HIV / AIDS cases are found in these countries.

If the company was to lower their prices, it would affect their investments, since the majority of people who need these drugs would be able to buy them at a cheaper cost. If the companies allowed these countries to ignore their patents, they would then be able to make generic copies of all the drugs they need and they would no longer need to deal with the pharmaceutical companies.