[Ip-health] GSK asks for tax and patent incentives for research into neglected diseases

[Mike Palmedo]

http://news.independent.co.uk/business/news/story.jsp?story=587783

Glaxo tells Blair to press G8 for patents reform

London Independent
Stephen Foley
29 November 2004

GlaxoSmithkline, the UK's largest pharmaceuticals company, has written
to Tony Blair to demand new tax credits and patent concessions to
encourage the development of medicines for the world's poorest countries.

The company is also urging the Prime Minister to use Britain's
presidency of the G8 group of industrialised nations to strengthen
global agreements on intellectual property rights.

The Government has said it will put the healthcare problems of Africa
among its priorities for the G8 presidency, which begins in January. But
GSK's letter highlights the difficulties of getting compromises in this
area, and sets the scene for another showdown with non-governmental
organisations such as Oxfam.

GSK, which produces some of the leading HIV treatments, proposes a
system of "transferable exclusivity" for patents, where the development
of a drug for a developing world disease is rewarded by an extension of
patent protection for a developed world medicine.

This would, in effect, mean Western governments paying more for their
most commonly used drugs to help subsidise medicines in poorer countries.

Jean-Pierre Garnier, GSK's chief executive, said the international
community must find ways to incentivise the pharmaceuticals industry to
produce life-saving medicines for tropical diseases where companies
would not otherwise invest. GSK's letter also suggests the G8 adopt tax
credits for developing world disease research and a fast-track approval
process for tropical disease medicines.

Michael Bailey, senior policy adviser at Oxfam, said the G8 must not bow
to industry pressure on the rigid enforcement of patent rights.

Meanwhile, GSK is poised to drop work on its drug Avandia as a possible
treatment for psoriasis, the skin complaint.

Separately, a BBC programme this week will accuse GSK of backing drugs
trials in the US in which underpriviliged children were forced to test
Aids treatments against their will.