Do trade agreements that provide for patent protection affect the price of medicines?
The impact of patent protection on the price of medicines is a real issue, particularly for developing countries. In the Declaration on TRIPS and Public Health, countries recognized the concerns about the effects of patent protection on prices. This concern must be balanced against the recognition that some degree of protection is necessary to provide incentives to the industry to invest in R&D and develop new drugs. The price of drugs depends on a wide variety of factors, including the cost of research and development, production, distribution and marketing.
