Abstract

http://ssrn.com/abstract=405280
 
 

Footnotes (97)



 


 



Pharmacogenomics, Genetic Tests, and Patent-Based Incentives


Michael J. Meurer


Boston University - School of Law

May 8, 2003

Boston Univ. School of Law Working Paper No. 03-09

Abstract:     
Pharmacogenomics promises to revolutionize medicine by using genetic information to guide drug therapy. Genetic tests will help doctors improve drug safety and efficacy by better matching patients and drugs. This Article evaluates the effectiveness of patent-based incentives to create genetic tests, and the optimal mix of public and private sector pharmacogenomic R&D. Drug patent owners have a strong incentive to develop genetic tests that predict adverse drug reactions and allow them to market drugs that otherwise would be shelved. Incentives are also strong for genetic tests that are created as part of the drug development process. Incentives tend to be weaker for genetic tests that are used in conjunction with existing drugs. Drug patent owners might gain or lose profit from introduction of genetic tests into existing drug markets. Profits may fall because of lost sales; or profits may rise because drugs are more valuable to appropriate patients, and because drugs become more differentiated.

Public sector R&D should target genetic tests that are likely to be underprovided by the private sector because private returns are low relative to social returns or private costs are high relative to social costs. Private returns are relatively low when the rate of adoption of a genetic test is apt to be low, when test results increase consumer heterogeneity and consumer bargaining power, and when a test reveals information relevant to the use of more than one drug. Private costs are relatively high when test innovators need to obtain costly patent and trade secret licenses.

Number of Pages in PDF File: 24

Keywords: patent, genetic test, pharmacogenomics, pharmaceuticals, research subsidy

JEL Classification: H4, I1, K2, L65

working papers series


Download This Paper

Date posted: May 14, 2003  

Suggested Citation

Meurer, Michael J., Pharmacogenomics, Genetic Tests, and Patent-Based Incentives (May 8, 2003). Boston Univ. School of Law Working Paper No. 03-09. Available at SSRN: http://ssrn.com/abstract=405280 or http://dx.doi.org/10.2139/ssrn.405280

Contact Information

Michael J. Meurer (Contact Author)
Boston University - School of Law ( email )
765 Commonwealth Avenue
Boston, MA 02215
United States
617-353-6292 (Phone)
617-353-3077 (Fax)
Feedback to SSRN


Paper statistics
Abstract Views: 2,102
Downloads: 245
Download Rank: 68,311
Footnotes:  97

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo1 in 0.344 seconds