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Issue 39
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5109 Kali Era, Sarvajit
Year,
Jyesta/Ashada
month
2065
Vikramarka Era, Sarvajit
Year,
Jyesta/Ashada
month
1929
Salivahana
Era, Sarvajit
Year, Jyesta/Ashada
month
2007 AD, June
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Record US Applications
A record number of patent filings were lodged with the European Patent Office
last year, with U.S. firms proving once again to be the most prolific applicants,
according to figures released in June.
US
Patent System
Our patent system is grounded in the Constitution. Among the specifically
enumerated powers of Congress in Article I, Section 8, commands to “promote
the progress of science and the useful arts, by securing for limited times
to authors and inventors the exclusive right to their respective discoveries.”
Those discoveries have, since the founding of our Nation, made us the envy
of the world. Our inventors, our research institutions, and the many companies
that commercialize those discoveries have brought a wealth of new products
and processes to the world. We have all been the beneficiaries of that creativity
and hard work.
However, it is becoming very vulnerable and not reliable nowadays. A study
by the FTC shows that, between 1992 and 2000, "generics prevailed in cases
involving 73% of challenged drug products." Let us say you are a generic
company. You could wait until the patent of a particular blockbuster drug
expires to market a generic version of it. You know that some patents
are vulnerable and may not be valid. You could market the generic version
claiming that you have a right to market because the patent is invalid or
unenforceable or isn't broad enough. The track record of such challenges
in court is surprisingly good for generics as shown by the FTC study.
Anticipation
AstraZeneca sells Omeprazole under brand name Prilosec®. Omeprazole
is a drug that inhibits the production of gastric acid. AstraZeneca’s Patent
No. 6,013,281 (the ’281 patent) claims a process of forming the pharmaceutical
formulation that is composed of a core containing an active alkaline reacting
compound (ARC), a water-soluble separating layer and an enteric coating layer.
A Korean patent application was published two years before AstraZeneca’s
earliest priority date. The patent issuing from that application had been
the basis for a lawsuit in Korea between AstraZeneca and the Korean applicant,
Chong Kun Dan Corp. The Korean patent publications described compositions
with no enteric coating processes.
Andrx sought to market a generic version of AstraZeneca’s drug. It argued
that its product did not infringe the ’281 patent because the separating
layer in Andrx’s generic version contained talc and was not water soluble.
After a lengthy trial, the district court entered a final judgment finding
that Andrx literally infringed the asserted claims of the ’281 patent, but
also found the claims anticipated or obvious. The trial record showed that
the ingredients and protocols Chong Kun Dan Corp provided in the Korean action
necessarily resulted in in situ formation of a separating layer. Accordingly,
the Federal Court concluded that the trial court correctly found inherent
anticipation. Judge Newman dissented that the majority contravened a vast
body of precedent and pointed to the undisputed fact that no reference explicitly
or inherently teaches AstraZeneca’s claimed process. In re Omeprazole Patent
Litigation, Case Nos. 04-1562, -1563, -1589 (Fed. Cir., Apr. 23, 2007) (Rader
J.; Newman, J., dissenting).
An Interesting Alternative
for Patents
Democratic presidential candidate John Edwards on June 14th proposed cutting
health care costs by overhauling the patent process for breakthrough drugs
and requiring health insurance companies to spend at least 85 percent of
their premiums on patient care. Edwards' plan would offer cash payments in
place of long-term patents for companies that develop certain breakthrough
drugs and then reap large profits because of the monopolies those patents
provide. He said offering cash incentives instead would allow multiple companies
to produce generic and other versions of those drugs to drive down prices.
Campaign officials said the payments could be voluntary for drug companies
and would be aimed at spurring the development of drugs that cure diseases.
China's
Drug Industry
With its reputation on the ropes after a string of dangerous food and drug
scandals, Chinese officials say they're overhauling the country's safety
regulations and adopting an inspections system to stop drug counterfeiting.
While much of the international attention recently has been centered on unsafe
pet food, the country's drug industry has been tainted by widespread reports
of dangerous or counterfeit drugs that have killed people inside and outside
of the country. New controls are expected to be in place by 2010.
China and India: Projected GDP
Robert Fogel, director of the Center for Population Economics at the University
of Chicago Graduate School of Business, makes some projections in a research
paper:
By 2040, India’s GDP (in PPP terms) will be $36,528 billion, which will account
for 12% of global economic output. That figure represents a 1,400% increase
over GDP in 2000. India’s per-capita income too will rise from $2,370 in
2000 to about $24,000 in 2040, according to Fogel’s projection. Over
40% of the population is still illiterate and gross secondary school enrolment
rates in 2002 were less than half the numbers in China. And even the enrolment
rate in higher education in India lags behind China’s, he points out. Agricultural
labour productivity growth rates in India are half that of in China, and
given that two-thirds of India’s labour force is still in agriculture, this
hinders growth of the overall economy, says Fogel.
By 2040, reckons Fogel, China’s per capita income will reach $85,000 - about
twice the projected figure in respect of the European Union! That’s a 23-fold
increase in 40 years (starting 2000 when the per capita income was about
$3,616)!
The European Union’s share of global GDP will decline from 21% in 2000 to
about 5% in 2040, he prophesies. http://tinyurl.com/28lt77
Support for Working Mothers
The United States and Australia are the only industrialized countries that
don't provide paid leave for new mothers nationally, though there are exceptions
in some U.S. states. Australian mothers have it better, however, with
one year of job-protected leave. The U.S. Family and Medical Leave Act provides
for 12 weeks of job-protected leave, but it only covers those who work for
larger companies. To put it another way, out of 168 nations in a Harvard
University study 2004, 163 had some form of paid maternity leave, leaving
the United States in the company of Lesotho, Papua New Guinea and Swaziland.
http://www.usatoday.com/news/health/2005-07-26-maternity-leave_x.htm
Channel
Stuffing
Channel stuffing is the business practice where a company or a sales force
within a company inflates its sales figures by forcing more products through
a distribution channel than the channel is capable of selling to the world
at large. This can be the result of a company attempting to inflate its sales
figures. Alternatively, it can be a consequence of a poorly managed sales
force attempting to meet short term objectives and quotas in a way that is
detrimental to the company in the long term. Many managers will engage in
channel stuffing to increase annual/quarterly sales. Even though this would
hurt the company because the distributors would have to return any unsold
goods back to the company, it would help the manager if his earnings was
based on a sales quota. http://en.wikipedia.org/wiki/Channel_stuffing
BMS won't face federal charges of channel stuffing as a two-year deferred
prosecution agreement is set to end June 15, 2007. In a statement, New Jersey
U.S. Attorney Christopher J. Christie said, "Bristol-Myers Squibb has made
significant and transformational changes in its compliance practices as a
result of the DPA [deferred prosecution agreement]."
Pepcid Complete Formulation
Patent Invalid
A judge has dismissed a patent case brought by a unit of Johnson & Johnson
and its partner Merck & Co. alleging that Perrigo Co. infringed a patent
used in the formulation of Pepcid Complete.
$1b
to Biotech in MA
Gov. Deval Patrick will soon begin the task of identifying which groups will
be eligible to receive the $1 billion in biotech funding he proffered at
the recent gathering of BIO in Boston. He proposed to funnel $100 million
a year into biotechnology over the next 10 years.
Ban
on Drugs and Seafood
China's capital banned ten types of drugs for exaggerated effectiveness,
a newspaper reported on June 29th, amid rising concerns of fake and tainted
products in China's food and drug supply chains. While the drugs were
genuine, the results they claimed to produce in fighting high blood pressure,
diabetes, and other ailments couldn't be supported in clinical testing, the
Beijing News reported. Stores in the city have been told to stop selling
them and media outlets that carried their advertising were told to print
retractions, the paper said. The orders were the first application of a new
law on drug advertising, it said. The announcement came a day after
the United States banned farmed seafood from China, adding to a growing list
of tainted and defective Chinese products that could pose health risks.
Beyond the fish, US federal regulators have recently warned consumers about
lead paint in toy trains, defective tires, and toothpaste made with diethylene
glycol, a toxic ingredient more commonly found in antifreeze. All the products
were imported from China. The safety scandals have put at risk surging Chinese
agricultural exports to the United States, which reached $2.26 billion last
year, led by poultry products, sausage casings, shellfish, spices and apple
juice. They also raise the possibility of retaliation against U.S. food exports
to China. At the end of June the Chinese government said it had seized shipments
of U.S.-made orange pulp and dried apricots containing high levels of bacteria
and preservatives.
Source: The primary sources cited
above, BBC News, New York Times
(NYT), Washington Post (WP), Mercury
News, Bayarea.com, Chicago Tribune, USA Today,
Intellihealthnews, Deccan Chronicle
(DC), the Hindu, Hindustan Times, Times
of India, AP, Reuters, AFP, womenfitness.net,
Biospace etc.
Notice: The content of the articles is intended
to provide general information. Specialist advice should be sought
about your specific circumstances.
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