AstraZeneca Chief Talks Pharma Challenges

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The strategy is not just trying to block groups such as Israel's Teva Pharmaceuticals (TEVA) or India's Dr Reddy's (RDY) from copying drugs and selling them more cheaply. Upholding patents is often a case of extending periods of exclusivity, or allowing generics access to certain markets, keeping the prized US market free of rivalry.

Earlier this year, AstraZeneca struck a deal with Teva over its plans to launch a generic version of the heartburn treatment Nexium. Under the agreement, AstraZeneca will grant a licence to Teva that prevents it entering the US market until May 2014, when the first Nexium patent expires. "You ask, is it a sustainable strategy?" says Mr Brennan. "It is actually critical for us to retain our intellectual property on our products – it is mission critical. But you know, the thing about patents is that they are not binary. The strengths vary, so on some where we have been challenged, we have settled. Sometimes that's better than a court deciding, because when a court decides, now that's binary. In other situations we have been to court. Will we continue to do it? Absolutely."

AstraZeneca's Nexium deal with Teva underlines the importance of the US healthcare market. America is by far the biggest spender on drugs and Mr Brennan, as chairman of the Pharmaceutical Research and Manufacturers of America, has become a focal point for the industry's reaction to President Obama's plans to offer universal healthcare to all Americans.

The election of the Republican Senator, Scott Brown, in Massachusetts has removed the Democrats' filibuster majority and, with it, the likelihood that Mr Obama will get all his proposals on to the statute book. Some argue that the inertia is good news for big pharma, but Mr Brennan denies that the industry is pleased with the delays. He insists that the White House respects the industry's need to make a return on the billions of dollars it invests in trying to find new treatments, a condition he refers to as the industry's "assumptions."

"Prior to Massachusetts election, getting healthcare reforms through was probably the highest priority of the President," says Mr Brennan. "As an industry we have supported healthcare reform, with certain assumptions. Experience of dealing with the Senate and White House on making sure those assumptions could be held has been pretty positive, and so we have stayed pretty positive."

Asked if the Obama administration is happy with the assumptions, Mr Brennan replies: "Well, I think they accept them."

The CV: David Brennan

2006-present Chief executive of AstraZeneca.

2001-2006 Chief executive and president of AstraZeneca's North American subsidiary.

1999-2001 Senior vice-president of AstraZeneca's commercial operations in the US.

1992-1999 Various senior commercial roles at AstraMerck. Responsible for turning the venture into a multibillion-dollar business in the US.

1975-1992 Worked as a sales representative in the US with Merck (MRK), rising to general manager of its French subsidiary.

Provided by The Independent—from London, for Independent minds

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