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ARTICLE · 17 SEPTEMBER 2007

Destination: India - Drug Discovery & Development

Finnegan, Henderson, Farabow, Garrett & Dunner LLP
Finnegan, Henderson, Farabow, Garrett & Dunner LLP
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Patent considerations are important for doing business when offshoring drug discovery and development.

United StatesIntellectual Property

Patent considerations are important for doing business when offshoring drug discovery and development.

The global pharmaceutical industry is under increasing financial pressure from the draining pipeline of blockbuster drugs, expiring patents, and the rising cost of research and development. Thus, many multi-national pharmaceutical companies (MNCs) are looking to external alliances to maximize R&D productivity by reducing research costs, compressing the period of drug discovery and development, and pursuing more research options.

Many of these MNCs are collaborating with Indian companies, which often offer as much as 30% to 50% savings in total drug discovery and development costs. Recent amendments to India's patent laws have also made India more attractive as a drug discovery destination. In 2005, India amended its patent laws to comply with the World Trade Organization's (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), an international treaty

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