Resolving Dysfunctional Pharmaceutical Arbitrage and Counterfeiting Through the Proposed Hubbard-Love R&D Treaty

One obstacle to the widespread rollout of compulsory licensure or greatly expanded access to essential pharmaceuticals is the fear that drugs intended for the poor will be diverted into high income markets, undermining pharmaceutical profits and ultimately, pharmaceutical R&D. In fact, this form of dysfunctional pharmaceutical arbitrage is rarely observed. A much greater threat to both pharmaceutical profits and public health is the production and sale of counterfeit drugs. The proposed Hubbard-Love R&D Treaty would eliminate the threat of dysfunctional arbitrage and dramatically reduce incentives to counterfeit