THE IMPLEMENTATION OF THE SOCIAL FUNCTION IN THE COMMERCIAL NATURE OF THE GLOBAL PHARMACEUTICAL MARKET

Abstract

This article examines the intersection between the social function and the commercial nature of the global pharmaceutical market, focusing on how companies balance profitability with social responsibility in providing essential medications. The study will explore the dynamics between pricing strategies, patent laws, and the availability of medicines, especially in low- and middle-income countries, where access often depends on market pricing, international aid, or generic alternatives. Through a critical analysis, the article will highlight how pharmaceutical companies, motivated by profit, can sometimes restrict access to life-saving drugs, and it will evaluate the ethical and economic challenges this presents. Additionally, the study will investigate the role of government regulations and international organizations (such as the World Health Organization and the World Trade Organization) in influencing the pharmaceutical sector’s social responsibilities. These entities play a crucial part in shaping the regulatory landscape by setting policies that can either encourage or hinder access to affordable medications. This includes evaluating the impact of international agreements like the TRIPS Agreement on intellectual property rights, which affects the duration and exclusivity of drug patents. The study will also assess alternative strategies for balancing commercial and social interests, such as compulsory licensing, public funding for research and development, and initiatives that promote the availability of generics. Moreover, the research will delve into the impact of globalization on the pharmaceutical market. Globalization has led to the expansion of pharmaceutical companies into emerging markets, influencing drug pricing, distribution channels, and access to medications worldwide. This expansion has implications for both the availability and affordability of drugs, with specific emphasis on developing countries where healthcare resources are limited. The study will consider how globalized supply chains affect drug production, regulatory oversight, and distribution, especially during times of crisis, such as the COVID-19 pandemic. The article will also analyze case studies of specific diseases (such as HIV/AIDS and tuberculosis), and initiatives aimed at increasing access to treatment in lower-income regions. These case studies will shed light on how pharmaceutical companies and governments can work together or independently to meet the healthcare needs of populations that may not offer immediate profitability. Through these examples, the study will provide insights into the ethical dilemmas that arise when social and commercial objectives intersect and will evaluate how companies have responded to public pressure and policy changes to meet social demands. Finally, the article will propose policy recommendations and potential solutions for reconciling the commercial imperatives of the pharmaceutical industry with its social mission. These recommendations will include exploring pricing models that reflect economic diversity among countries, encouraging transparency in drug development costs, and fostering partnerships between private companies and public health agencies to promote access to essential medicines. By addressing these complex issues, the study aims to contribute to the ongoing discourse on achieving a fairer, more accessible global healthcare system that recognizes both the social responsibilities and commercial needs of the pharmaceutical industry.