As a result, this protection was removed to increase the supply and ensure that the public has access to affordable drugs. ("Pharmaceutical Companies," n.d., pp. 97-99)
Some of the negative implications of this decision are that there could be large amounts of generic drugs produced. This is because the various protections were removed to the point, that a number of players could begin manufacturing the medication. Over the course of time, this could destroy any kind of financial incentive in these areas. Once this occurs, it means that any kind of profit motives for these firms to sell drugs in these areas will decrease. This is when the available supply could decline, because there is too much competition. ("Pharmaceutical Companies," n.d., pp. 97-99)
At the same time, the quality of products could be inferior. This is because many firms will have select procedures in place to ensure that everyone is receiving the right dosage. The problem is that some companies could reduce this amount. Once this takes place, it means that these drugs will not be as effective in helping to treat those who are suffering from HIV / AIDS. Once this occurs, is when larger segments of the poor and middle class could begin to see higher mortality rates from the disease. ("Pharmaceutical Companies," n.d., pp. 97-99)
The way that this could impact other industries is to remove protections they enjoy for particular products. Where, their underling costs will increase for related materials such as bottles and plastic bags. This is because the medication is being distributed to larger segments of the population. Once this occurs, it means that various industries could be dealing with possible inflation issues down the road. This is the point that other industries will have trouble keeping up with these rising costs (which they are passing onto consumers). ("Pharmaceutical Companies," n.d., pp. 97-99)
Given the initiatives announced by global development and aid organizations and among pharmaceutical companies themselves, was it necessary to relax IPR rules in order to ensure that adequate supplies of AIDs medications would be available for distribution in the developing world?
Yes, the reason why the various rules had to be relaxed was to ensure that everyone had access to these drugs when they need them. If they kept the current procedures in place, this would have limited the sale of HIV / AIDS medication to the affluent inside various developing nations. This would have caused uneven amounts of economic growth, which would have an adverse impact on any kind of economic development. This is because large segments of the population have higher mortality rates. Over the course of time, this will create a situation where there will be issues of declining productivity and a loss in the wealth of these regions. ("Pharmaceutical Companies," n.d., pp. 94-103)
As a result, once there was some kind change in regulations is when drug manufactures were able to supply developing countries with larger quantities. This is the point they increased their market share in these areas. While at the same time, they addressed the lingering public health issues that were facing many of these nations. Once this occurred, is when there would be an increase in the total amounts of supplies that were available in these regions. This is when the mortality rates associated with the disease began to stabilize and then decrease. ("Pharmaceutical Companies," n.d., pp. 94-103)
What role do MNCs have in providing funding or other assistance to international organizations such as the Global Fund?
The way that MNC's are providing funding to international organizations is to establish for profit entities that will distribute HIV / AIDS drugs to these areas. The way that this works, is these various nonprofits, corporations and governments can make contributions to this fund. They will provide assistance to developing nations in offering the public these drugs for lower costs or free. Once this occurs, it means that they are addressing the epidemic by providing the public with a way to ensure that these areas receive the medication they need. This is when the manufactures will be able to maintain their profit margins. While at the same time, it is providing developing nations with a vital supply of drugs for large segments of the population. ("Pharmaceutical Companies," n.d., pp. 94-103)
Clearly, the HIV / AIDS crisis is creating shifts in the way that drug companies are looking at issues such as patent protections. This is because the standard rules of the past, are offering them with a way of maximizing their profits. However, it is also effectively helping select segments of these populations. Once this occurs, is when the mortality rate in these areas will increase exponentially. This is the point that economic growth in these regions could reverse. To deal with these lingering issues, the regulations on patent protections were loosened to increase the available supply to consumers. Over the course of time, this providing these areas with a large amount of drugs that are available to the general public. At the same time, it helped to keep the costs of the medication as low as possible. This is when most people could afford the treatment options that were available. Once this took place, it meant that total number of deaths began to decline consistently. As a result, the net impact of these efforts is that they helped to save millions of lives around the world.
Global Report. (2009). UNAIDS. Retrieved from: http://www.unaids.org/globalreport/documents/20101123_GlobalReport_full_en.pdf
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