Nanotechnology patents and the future of the pharma industry

**Medicine** is big business. The big **pharma companies** have traditionally enjoyed enormous profits that would make the eyes of other companies' CEOs water (apart from big oil companies, of course). The combined annual net income for the top 10 pharma companies (ranked by market capitalization) currently is about $73 billion. Pfizer alone has a net income of approximately $19 billion. The recipe for success? Patent protection and intellectual property rights (IPRs). The core of Big Pharma's business model relies on patent protection for their blockbuster **drugs**, which allows them to sell these drugs at extraordinarily high profit margins that they wouldn't be able to generate in a competitive market. Point in case: Lipitor, the cholesterol-lowering drug that accounts for nearly $13 billion of Pfizer's revenues and over 40% of its profits. Another key part of the pharma business model is heavy spending on sales and marketing. Whole article on "nanowerk":[ http://www.nanowerk.com/spotlight/spotid=2912.php]

---