The Dangers of Intellectual Property Laws in the Market for Insulin

 by Amelia R

The World Trade Organisation defines intellectual property rights as "the rights granted to persons over the creations of their minds." Essentially a privileged claim over the use of his/her creation for a particular amount of time, or even the right to gatekeep ones ideas. Despite the apparent requirement for legal protections such as the copyright to the Harry Potter series, where the author, JK Rowling, controls intellectual property rights and copyright, there are still significant deficiencies and flaws regarding such rights in the US drug industry, specifically with respect to insulin.

The life-saving drug reduces the possibility of ketoacidosis and diabetic coma. In the United States, regardless of the fact that it costs barely ten dollars to make, one in every five Americans is unable to afford it; a 10ml vial selling for around $300. Thus, many diabetics in the US ration their treatment, or forgo it all together; failing to provide their body with the insulin it requires, risking hospitalisation and at worst, death.

Regardless of being discovered nearly a century ago, the price increase is partly due to patents and other forms of intellectual property protection that allow pharmaceutical businesses to sustain monopolies and charge higher rates for insulin products. Currently, patents are held by monopolies such as Eli Lilley, Novo Nordisk, and Sanofi, no generic version of the drug can be manufactured by anybody else, with these companies dominating 90% of the market. Thanks to intellectual property laws, these pharmaceutical companies monopolise and limit the production of insulin, which decreases market competition for them. But as a consequence, other firms now have fewer incentives to manufacture other generic or biosimilar products to insulin, which would reduce prices - increasing the accessibility to patients. 

To make matters worse, Novo Nordisk has decreased insulin production while concentrating on more profitable weight-loss medications. This alteration in focus, combined with supply chain strains and increased demand, has resulted in shortages. Furthermore, in spite of drug price controls, many people continue to be forced to ration their medication. Intellectual property laws and patent system reforms concerning terms and expiration dates could be changed, but many people continue to face uncertainty about the availability of vital treatment.