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Author: Admin | 2025-04-28
May employ strategies such as patent evergreening or developing a new generation of the product to extend profitability. For example, some pharmaceutical companies introduce modified versions of their drugs with slight improvements to secure new patents, thereby delaying generic competition.2. Market Dynamics: The market value impact varies across industries. In technology, for instance, the pace of innovation is so rapid that products may become obsolete before the patent expires, reducing the financial blow to the patent holder.3. Investor Sentiment: The anticipation of patent expiry can affect a company's stock price long before the actual date. Investors closely monitor the patent cliffs and may divest from companies heavily reliant on soon-to-expire patents.4. Global Implications: Patent expiries can have different impacts in various regions, depending on local patent laws and market conditions. For example, a drug may face generic competition earlier in one country compared to another due to differences in patent term extensions.5. Case Studies: The case of Pfizer's Viagra is a notable example. Upon its patent expiry, generic versions flooded the market, causing a significant drop in Pfizer's revenue from Viagra sales. However, Pfizer managed to retain some market share by introducing its own generic version at a lower price point.The expiry of a patent is a pivotal event that can reshape market landscapes. It challenges companies to innovate and adapt, while offering consumers more choices and potentially better prices. Understanding the multifaceted impact of patent expiry is essential for stakeholders to navigate the changes and capitalize on the opportunities it presents. The strategic timing of patent expirations and the response to them can indeed make or break the financial future of a product.The Impact of Patent Expiry on Market Value - Patent Expiry: Timing is Money: How Patent Expiry Dates Affect Valuation 2. Understanding Patent Lifecycles and Their Economic SignificancePatents are the lifeblood of innovation, serving as both a reward for ingenuity and a beacon for future explorations. They grant inventors exclusive rights to their creations, offering a temporary monopoly in exchange for public disclosure of the invention. This trade-off is at the heart of the patent system, designed
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