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LONDON (Alliance News) - GlaxoSmithKline PLC Thursday said it will not file patents for its pharmaceutical products in the least developed countries around the world in order to improve access to medicine around the world.
GlaxoSmithKline said it will adjust its approach concerning intellectual property and patents for its drugs on each individual country they are sold in, reflecting the economic maturity of each nation. The company committed to not filing patents in any low income countries or in the least developed nations.
Speaking at the UN High Level Panel on Access to Medicines, Chief Executive Andrew Witty outlined the plans to try to allow more people around the world to access medicines.
Witty said that holding the rights, intellectual property or patents over certain medicines and drugs drives investment in drug development, but that the decision will address pressing health challenges around the world.
"GSK has a deep commitment to improving healthcare by developing innovative new medicines and widening access to them around the world. Over the past eight years, the company has taken steps in a number of areas including tiered pricing, healthcare infrastructure building, data-sharing and innovative partnerships," said Witty.
"GSK recognises that improving access around the world requires a flexible and multi-faceted approach to intellectual property protection. While IP stimulates and underpins continued investment in research and development, GSK believes being flexible with its IP can help address pressing health challenges in developing countries," he added.
By not filing patents in the least developed nations across the globe, other manufacturers in those countries will be able to create generic versions of drugs and medicines that have been developed by GlaxoSmithKline.
That, in turn, should boost competition in the market, improve research and development, and therefore bring down the cost of those drugs.
In lower-middle income countries, GlaxoSmithKline said it will "generally" file patents, but said it will seek to offer and agree licences to allow supplies of generic versions of its medicines for 10 years.
That will come at a price, however, as the company aims to secure a "small royalty" on sales of those products made by other manufacturers.
For high income, upper income and G20 countries, GlaxoSmithKline will retain full patent protection.
"In itself, intellectual property is not a barrier to access to medicines. However, we recognise that the global healthcare challenge requires us to be flexible in our approach and responsive to different needs, particularly as the disease burden shifts from infectious to non-communicable diseases," said Witty.
Implementation of the proposals will be subject to local laws, and the company will now consult with its licensing and co-development partners on the proposed changes.
GlaxoSmithKline shares were down 0.3% to 1,407.50 pence per share on Thursday afternoon.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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