Creating R&D Incentives for Medicines for Neglected Diseases: An Economic Analysis of Parallel Imports, Patents, and Alternative Mechanisms to Stimulate Pharmaceutical Research

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Virtually no research is targeted at developing medicines for tropical diseases as the expected market returns from R&D into these diseases in the private pharmaceuticals sector are too low. Frank Muller-Langer addresses the market failure with respect to R&D for medicines for tropical diseases and the lack of short-term access to affordable medicines in poor countries. The author analyzes additional push and pull mechanisms to stimulate R&D for pharmaceutical products alongside patent protection which may help mitigate the problem of those consumers in poor countries who lack access to affordable medicines. Furthermore, he reasons that a global regime of banning parallel trade from low-income countries to high-income countries is desirable from a developing country’s perspective.