Press Release on Access to Medicines: Drug Pricing and Patents
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Health Action International Asia Pacific
Colombo 4, Sri Lanka
Email: hai@haiap.org
WHO estimates that currently one third of the world's population
lacks access to essential drugs. Over fifty percent of people in
the developing world especially in Africa and Asia do not have
access to even the most basic essential drugs. This is one of
the pressing issues in the world that requires urgent attention
at present.
Access to medicines depends on four critical elements: Afford-
able prices, rational selection and use, sustainable financing
and reliable supply systems. Due to limited financial resources
in the developing world drug pricing has become the most impor-
tant factor that restricts access to medicines. There are many
factors, which influence and maintain the higher & unaffordable
prices of drugs, however, lack of price control measures and the
pricing policies of multinational pharmaceutical companies are
considered the most important contributing factors.
The paper presents an overview on Globalization, Intellectual
property Rights (IPRs) and Patents, which have taken a new turn
with the introduction of the Agreement on Trade-Related aspects
of Intellectual Property Rights (TRIPs Agreement). WTO/TRIPs
Agreement will make the current health crisis a disaster in the
near future. WTO multi lateral agreements play a crucial role in
legitimizing globalization, which results in increased poverty,
the reason that cuts off one third of the world's population
from access to basic essential drugs and if implemented, the
multinational way, will lead to a situation where over 50 per
cent of the world population will have no access to essential
drugs.
Focusing on the DOHA declaration and the TRIPs Agreement, the
paper outlines Parallel Importing and Compulsory Licensing pro-
visions that can be used to limit patents and monopolies in the
TRIPS Agreement and highlighted at the 4^th Ministerial Confer-
ence in DOHA. These measures are stated as crucial in enabling
access to affordable medicines. The paper deals with many other
important issues of access to medicines including; patents and
research development, local production and technology transfer,
drug donations, differential/preferential pricing or tiered-
pricing system and public private initiatives.
In conclusion the position paper recommends several steps that
could be implemented at national, regional and international
level to bring about change. Some important recommendations are:
* Adopt and implement National Drug Policies (NDP) based on the
concept of essential drugs that are formulated with substantive
involvement of citizens and NGOs.
* Produce National Drug Formulary and Therapeutic Guidelines
based on the essential drugs concept and containing drug-pricing
information.
* Promote and encourage generic competition
* Eliminate barriers to access to medicines and raw materials,
including overly rigid and / or expensive regulatory require-
ments, unnecessary margins on prices.
* Develop systematic and transparent solutions to ensure equity
pricing and cautious about accepting deals with unreasonable
conditions.
- Countries should be able to exercise their rights in determin-
ing their public health priorities and be allowed to take neces-
sary measures independently.
- Bilateral pressure from multi-national drug exporting coun-
tries placed on developing countries must be stopped.
- Countries that do not have local manufacturing capacities in
producing medicines should have measures to issue compulsory li-
censes to firms in countries that can meet their production
needs and have the production shipped to them.
- Educate health activists and key policy makers of developing
countries on the safeguards provided by the Doha Declaration on
TRIPs that will enable the developing countries to manufacture
or import cheaper drugs.
- Developing countries should develop a comprehensive interna-
tional legal framework to ensure the optimal utilization of the
Doha declaration safeguards and priority to public health inter-
ests.
For further information contact:
Information & Communications Officer, Health Action Interna-
tional Asia Pacific
mailto:passanna@haiap.org