Evaluation of the post-WTO sustainability of the pharmaceutical industry in Iran

• Main Author: Farzandi, Gholamhossein
• Published: Cardiff University 2011
• Subjects: 338.4
• Online Access: http://ethos.bl.uk/OrderDetails.do?uin=uk.bl.ethos.585136

The outcome of joining the WTO and implementing TRIPS agreement has caused a never-ending dispute in terms of both positive and negative perspectives. Patient's access to essential medicines and sustainability of the domestic pharmaceutical industry are two important relevant topics in the developing countries. Two major consequences are trade liberalisation and enforcing an international intellectual property rights. The immediate impact will be free flow of medicines from the developed countries in the case of innovative drugs and more recently from India and China for cheap commodity medicines that are supported by the internationally enforceable intellectual property protections. The aim of the study was therefore to evaluate sustainability of the pharmaceutical industry in Iran post WTO agreement using the readiness index. In the absence of previously developed instruments, two study tools were developed and validated in the course of this study namely WTO pharmaceutical Industry (PI) Impact Rating Scale and Pharmaceutical Industry Transition Instrument (PITI). Using the Delphi technique, an expert panel consisting of academics, industry senior managers and regulators identified 29 parameters that the study should focus on generating consensus for the industry in preparation of joining the WTO. The top 6 parameters included importation tariff, management knowledge, training, R&amp;D, customer satisfaction and patent review. The study was then carried out throughout the industry to evaluate the current situation and future importance of the identified parameters that were restructured in 66 statements of the PITI. The outcomes of the studies reported in this thesis suggest that with the current situation in the pharmaceutical industry in Iran, it is unlikely that the industry will be able to cope with the post-WTO challenges to deliver the growth needed to underpin its long term sustainability. The compliance of the industry with the requirements of the WTO at the current situation was concluded to be "unsatisfactory" for the majority of the PITI statements using binomial test (p<0.05).