What LDC graduation will mean for pharma industry
Domestic pharmaceutical companies say losing patent rights flexibilities will make medicines more expensive, as producing them would be costly.
Pharmaceutical companies in Nepal are allowed to produce medicines just by paying royalties to the innovators and without obtaining patent rights.
This flexibility is provided for least-developed countries (LDCs) like Nepal under the WTO’s Agreement on Trade-related Aspects of Intellectual Property Rights (TRIPS).
However, Nepal will lose this flexibility upon LDC graduation. Nepal is graduating from the LDC to a developing country in November 2026.