Pharma Firms Pressed to Relax Patents for Developing Countries

A recent article by ESG Investor covers the Access to Medicine Foundation’s recently released report, which highlights how pharmaceutical companies are tackling issues related to equitable access to medicines in low- and middle-income countries (LMICs). The article specifically focuses on the Foundation’s analyses on voluntary licensing practices.

The article opens with an explanation of the significance of voluntary licensing, highlighting it as an effective strategy for improving the local availability of medicines. However, it also presents findings from the 2024 Access to Medicine Index, which reveal that only two new non-exclusive voluntary licensing agreements were finalised the Index's analysis period.

“Voluntary licences are a tried and tested mechanism to widen access to more markets. Any level of responsible intellectual property (IP) management can make a huge difference and impact on people’s lives, and the reputation and trust in companies and the industry,” The article quotes Jayasree Iyer, CEO of the Foundation.

The article also highlights another concern raised in the 2024 Index: a significant gap in research and development (R&D) across many countries. It points to a “worryingly low” representation of resource-poor populations in clinical trials. Referring to the 2024 Index, the article cautions that this stagnation risks excluding genetically diverse populations from research, potentially limiting access to essential medicines.

“Companies must plan early about access, expand clinical studies to more regions, and register products in more countries,” the article quotes Jayasree saying: “This can unlock growth in markets across the world and is one of the biggest opportunities where the industry [and] investors can really drive the agenda.”