Analysis of the Factors Influencing Enterprise and Government Participation in the Medicines Patent Pool Based on System Dynamics Model

• Main Authors: Jinjing ZENG, Wende ZHANG, Qingming TANG
• Format: Article
• Language: English
• Published: Tehran University of Medical Sciences 2018-10-01
• Series: Iranian Journal of Public Health
• Subjects: Medicines patent, Patent pool, Medicine accessibility, System dynamics, Intellectual property
• Online Access: https://ijph.tums.ac.ir/index.php/ijph/article/view/14911

Background: The participation of enterprises and governments in the Medicines Patent Pool (MPP) improves the disease management levels by enhancing the accessibility of medical resources. Non-participation of the stakeholders restricts the development of the MPP. Hence, systematic analysis of the key factors influencing MPP participation is necessary. Methods: A system dynamics model of the market before and after enterprises and governments join the MPP was constructed by considering the economic benefits of both stakeholders. The effects of generic drug prices, royalty rates, pooling subsidies, and enterprise scale on the relevant benefit difference were analyzed. Data from the China Medical and Economic Network for the period 2003-2016, as well as the 2017 annual report of Celgene Corporation, were used as test data. Results: The proper pooling subsidy coefficient ranges between 0.05 and 0.08 when the generic drug price ratio and royalty rate are lower than 36% and 34%, respectively. These factors could enhance the willingness of both stakeholders to join the MPP. Initial R&D investments and the relative drug patent intensity of enterprises respectively exert positive and negative impacts on their willingness to join the MPP. Conclusion: To encourage stakeholders to join the MPP, generic drug prices should be lowered, license fees and subsidies should be adjusted appropriately, and the R&D scale and strength of original drug enterprises should be taken into account. The research results provide a reference for formulating the rules of MPP and other policies aiming to facilitate the sharing and innovation of medical resources.