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Proprietary drug

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Proprietary drug

Proprietary drug are chemicals used for medicinal purposes which are formulated or manufactured under a name protected from competition through trademark or patent. The invented drug is usually still considered proprietary even if the patent expired. When a patent expires, generic drugs may be developed and released legally. Some international and national governmental organizations have set up laws to enforce intellectual property to protect proprietary drugs, but some also highlight the importance of public health disregarding legal regulations. Proprietary drugs affect the world in various aspects including medicine, public health and economy.

Not all proprietary drugs have their generic replacements available. Biologics are often produced by in vivo preparation and direct extraction of substances from living organisms. Pharma is not extensively involved in searching for ready-to-sell generic biologics due to the complexity of manufacture and hurdles in extraction processes. Besides vaccines, these endogenous origin chemicals are prescribed to patients with severe conditions, such as complications including asthma, rheumatoid arthritis, or cancer. Patients taking a particular brand of biologics are unable to interchange between one and another to prevent underlying exposure to more side effects and/or suboptimal treatment. It is believed that generic biopharmaceutical products will not be released in the near future until all technical difficulties are overcome.

The table below shows some examples of pharma and their past/current proprietary medications:

Broadly defined as drugs that are marketed under trade names and have patents, which can be a synonym of proprietary drugs in daily use. Strictly speaking, every drug with a trade name is a brand name drug, such as Panadol, a GSK branded paracetamol.

Generic drugs are drugs that have the same active ingredient with a patent-expired drug, and are virtually bio-equivalent. The official names are often used to market these drugs, which are called unbranded generic drug, such as Panamax, a generic form of paracetamol.

A term specifically used to describe past proprietary drugs by referring to their off-patent status.

To support scientific investigation and protect intellectual properties, patents are granted to companies and individuals who invented the drug. Most entities in the world have established corresponding agendas legally. Global and regional governmental organizations have various extents of advancements and approaches in their intellectual property rights protection laws. Below are some examples for comparison:

The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) set up in 1994 suggested a standard on Intellectual Property Rights, which proprietary drug, a type of pharmaceutical and scientific inventions, is covered in this agreement. Basic principles such as the minimal duration of patent and part of the exclusive rights of patent owners are included by WTO member states in their respective national regulations. By 5 years and 10 years after the effectiveness of TRIPS Agreement, developed countries and developing countries were required to comply with it.

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