Steady,
As I see it, if Anavex licenses IP to established BP’s or enters a JV (joint venture) with established BP’s THOSE entities will be setting the price.
Example:
Anavex licenses Blarcamesine to LLY for Alzheimer’s.
Eli Lilly drug company may market that compound under any name it sees fit and sell to market. Let’s say Lilly calls the drug Reclecta (short for recollect-a as in memory regained, or something catchy...)
Lilly goes thru the process of negotiating with insurance carriers for reimbursement for Reclecta. They recover their costs and only make a profit after splitting with Anavex.
Repeat this scenario with as many companies as you need in order to see that Anavex never has to justify setting a different price for the same drug.
Not complicated. Benefit of being realistic. Can’t a landlord charge different amounts for different houses? Some are section 8 and come with a limit. Others are “what the market will bear”. I see no logical reason that a licensee must justify different price points once it is removed from the market transaction. Our agreement will be between other entities - they are not our jurisdiction regarding what they charge. Why do we justify?
The paradigm holds in many industries and is not new. Independently franchised fast food chains buy rights to the brand from a central HQ and must sell the sandwiches and products per the precise recipe, however, no limit on the offer one franchise can make regarding Buy One Get One Free* (at participating stores). That’s the independent owner’s decision.
And, if insurance carriers dictate one compound, one price, they tie everyone’s hands which would prohibit repurposed drugs being used for different indications and all license deals would be subject to a lowest common price denominator. That stops the ability to structure deals and loses appeal instantly - flat rate for all.
Let me ask you:
If Pfizer develops a new use for Aricept (donepezil) and changes the name (but same compound), does Pfizer get patent exclusivity for the new indication or does it go straight to generic since Aricept went generic years ago?
That should answer your question and speak to why companies repurpose already approved safe drugs - “evergreening” - form of extending patent protection for already existing drugs without the need for many trials.
Bio
