| Author (Person) | Cronin, David |
|---|---|
| Series Title | European Voice |
| Series Details | Vol.10, No.13, 15.4.04 |
| Publication Date | 15/04/2004 |
| Content Type | News |
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By David Cronin Date: 15/04/04 ALMOST twelve months ago, Trade Commissioner Pascal Lamy hailed a European Union scheme aimed at providing affordable drugs to the developing world as "an important contribution to ensuring a cheap yet sustainable supply of key medicines to the populations of poor countries". So far, however, just one firm has applied to avail itself of the 'tiered pricing' programme for drugs to treat AIDS, tuberculosis or malaria, which kill more than 6 million people worldwide each year. Adopted by the Council of Ministers in May 2003, this voluntary scheme seeks that firms sell medicines for these diseases in 76 poor countries according to a reduced-price formula. The prices would be either a quarter of the average factory price in member countries of the Organization for Economic Cooperation and Development, or at 15% above the cost of production. The European Commission has confirmed that GlaxoSmithKline (GSK) is the sole company to have decided to make use of the provisions. GSK's application is limited to seven types of anti-retroviral (ARV) treatments, which can delay the onset of AIDS. These include a brand of the widely prescribed ARV drug, combivir. Asked if he is disappointed with the results obtained by the scheme, Lamy told European Voice: "It is somewhat early to make a final judgment since the first applications were filed only in February 2004. "Nevertheless, I note with satisfaction that the world's leading manufacturer of HIV anti-retrovirals is willing to actively engage in a tiered- pricing policy. "For the regulation to have a positive impact, it will be sufficient that only one company - especially if it is the market leader in anti-retrovirals - engages in tiered pricing because, from this moment onwards, these products will be available to those who need them most. "We have little doubt that, after some initial hesitation, others will follow this example. "The decision to engage in a policy of tiered pricing is, in any case, a commercial decision of the companies involved and the Commission cannot take this decision in their place. "We believe that tiered pricing is a win-win strategy - advantageous not only for the populations affected by the targeted diseases, but also for the companies themselves, who are enabled to enter into new markets." But relief agencies have queried the effectiveness of the scheme. "Although we've said that products sold at a tiered price could be part of the solution, for some products, it doesn't answer the major need," said Seco Gerard, from Médecins sans Frontières. "For example, this scheme doesn't answer the major need to have fixed-dose combinations, where people can take three pills in one, instead of three pills a day. "At the moment, this is not possible. Companies are not able to provide fixed doses because of patents." Boosting access to such cocktails of medicines is one of the objectives of the World Health Organization's '3 by 5' campaign. This aims to provide treatment for three million people affected by HIV or AIDS by 2005. Tiered pricing, added Gerard, cannot act as a substitute for an implementation of safeguards in the World Trade Organization's TRIPS (trade-related intellectual property rights) agreement, which allow the waiving of patents in public health emergencies. High drug prices are one of the key factors hampering access to vital medicines in poor countries. A survey in Zimbabwe recently found that the cost of cocktail therapies for HIV-AIDS is Û360-440 per month, whereas the monthly wage for workers in the country is frequently less than Û100. Zimbabwe has an estimated one million HIV- positive people, making it one of the countries worst hit by the virus. The pharmaceutical industry made little secret of its antipathy to the tiered-pricing plan before its adoption last year. The fundamental reason behind the misgivings was a fear that cheap medicines would be reimported into Europe, thus undermining industry profits. The regulation endorsed by European Union governments sought to address those concerns by forbidding the reimportation of drugs from 76 countries. Most of these are least-developed countries in Africa, but India and China are also included. |
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| Source Link | Link to Main Source http://www.european-voice.com/ |
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| Subject Categories | Business and Industry, Politics and International Relations |
