[Ip-health] Colombian study on impact of FTA on medicines

[Mike Palmedo]

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Brief description (Cut and pasted below)
http://www.ftamalaysia.org/article.php?aid=3D153

Full Study:
INTELLECTUAL PROPERTY IN THE FTA: IMPACTS ON PHARMACEUTICAL SPENDING AND
ACCESS TO MEDICINES IN COLOMBIA
Miguel Ernesto Cortes Gamba
Published by Mision Salud and Fundacion IFARMA
October 2006

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Colombian Study on Impact of US FTA on Medicine

Online Publication Date: 12 March 2007

This is an English translation of a full study done in Colombia of the
impacts of its US free trade agreement (USFTA) on medicine consumption and
the Colombian generic industry. The study study used the World Health
Organization's methodology.

The study did not consider all the provisions in USFTAs that go beyond thos=
e
required by the World Trade Organization's intellectual property rules
(TRIPS), so it is likely to be an underestimate. For example it did not
consider the impact of joining the Patent Cooperation Treaty, the impact of
the preamble, investment chapter and non-violation provision, and the impac=
t
of restrictions on compulsory licensing on medicine prices.

Nevertheless, it found that:

=B7 Broadening the scope of patentability to allow patents for minor
modifications would cost an extra US$241million in the year 2020 and an
extra US$353million per year by the year 2030 because more medicines would
be patented. This alone would also cause Colombian medicine manufacturers t=
o
lose up to 17% of their market share.

=B7 If the USFTA required patents to be given for new uses of an old medici=
ne
(for example zidovudine (AZT) was a cancer medicine and then it was found t=
o
be useful for treating AIDS. If patents on new uses were allowed, this woul=
d
mean that AZT received two consecutive 20 year patents, resulting in a 40
year patent monopoly) this would cause an 8% increase in medicine prices in
Colombia by 2020 resulting in an additional cost of US$181million per year
by 2020 and US$265million per year by 2030. This alone would also cause the
Colombian medicine manufacturers to lose up to 13% of their market share by
2020.

=B7 The overall impact of the patents provision in Colombia's USFTA is
estimated to cost Colombia an extra US$401million per year by 2020 and an
extra US$657million per year by 2030. If this additional amount is not
spent, the consumption of medicine by Colombians would have to fall by 18%
by 2020 and 20% by 2030. This patent provision alone would cause the
Colombian medicine manufacturers to lose up to 31% of their market share by
2030.

=B7 Data exclusivity (which grants a separate monopoly, even when there is =
no
patent) was found to require Colombia to spend an additional US$675million
per year by 2020 and US$989million per year by 2030. If this additional
money is not spent, Colombians will have to reduce their medicine
consumption by 30% by 2020. Data exclusivity alone is predicted to cause th=
e
Colombian medicine manufacturers to lose 47% of their market share by 2020.

=B7 The linkage of patent status and approval of the quality, safety and
efficacy of medicines is predicted to increase spending by US$53million per
year by 2030 and cause Colombian medicine manufacturers to lose 3% of their
market share by 2020.

=B7 The trademark provisions of a USFTA would reduce the rate at which
patients chose the generic version of medicines so would cost an additional
US$167million in the year 2020 increasing to an additional US$246million pe=
r
year by 2030.

=B7 The total effect of all of these USFTA provisions is to require an extr=
a
US$1.5billion to be spent on medicines every year by 2030, if this extra
money is not spent, Colombians will have to reduce their medicine
consumption by 44% by 2030 (page 37). It will also cause Colombian medicine
manufacturers to lose 64% of their market share by 2030.