[Ip-health] PhRMA: "How can a chronic, slow-acting, non-contagious condition be considered a public-health crisis?"

[Ira Glazer]

http://tinyurl.com/2frhy4*

*(from thehill.com)*
*
Contributed by Ian Swanson
May 23, 2007

Drug companies are making a concerted effort to increase pressure on
Thailand and other developing countries to honor
U.S. drug patents.  The Pharmaceutical Research and Manufacturers
Association (PhRMA) is alarmed by Thailand's decision to authorize  the
production of generic versions of two AIDS drugs that are still under
U.S. company patents, as well as one
cardiovascular drug.

In particular, U.S. drug-makers worry that other countries could emulate
Thailand's decision. Brazil earlier this month
announced it will authorize a license for the production of an AIDS
drugs, PhRMA notes.  PhRMA President and Chief Executive Officer Bill
Tauzin said that in the long term, this move could cost U.S. jobs and
cause the entire system of protecting intellectual property "to crumble."

If other countries also issue compulsory licenses for the production of
generic drugs, particularly emerging markets like
Thailand, Tauzin said U.S. consumers would be forced to carry a greater
burden of covering the industry's research and
development costs.

World Trade Organization (WTO) rules do grant poor countries the right
to issue compulsory licenses authorizing the
production of generic drugs to deal with public health crises. But
critics feel Thailand is pushing the envelope by
announcing a license for Plavix, a cardiovascular disease medication.

Tauzin met with Thailand Health Minister Mongkol na Songkhla on Tuesday
to discuss the issuance of the three
compulsory licenses. In a follow-up call to reporters, Tauzin emphasized
that his talks with the Thai minister were frank
and helpful, and that Mongkol emphasized that his country sees the
issuance of compulsory licenses as a rare event.

Thailand officials have also suggested they may issue a compulsory
license for a cancer drug, but Tauzin said Mongkol
offered nothing new during the meeting on that subject.

Tauzin said Mongkol's message to PhRMA was that many of Thailand's
citizens are mired in poverty and that the country
has a need for access to cheap medicines. Tauzin said PhRMA's hope is
that Thailand will fully consult with U.S.
companies to lower drug costs without resorting to authorizing the
production of generic drugs.

At the same time, Tauzin said that if Thailand continues to issue
compulsory licenses for the production of drugs
protected by patents, PhRMA could press the administration for tougher
action. He specifically mentioned the possibility
that the U.S. could eliminate trade preferences allowing some Thai
imports to enter the country duty-free.

Indeed, the Office of the U.S. Trade Representative late last month
issued an annual U.S. report on the status of
intellectual property protections that faulted Thailand for
deteriorating patent protections. The Special 301 report elevated
Thailand to a list of "priority watch" countries, which could lead to a
decision to withdraw trade preferences.

But it is unclear whether Washington will want to punish poor countries
that issue compulsory licenses to increase their
supplies of affordable drugs, particularly with Democrats in charge of
Congress and PhRMA's influence on the wane.

Thailand's actions have received support from some key advocates,
including former President Bill Clinton, whose
Clinton Foundation has worked with drug companies to lower prices for
medicines in developing countries. The Reuters
news service this week quoted Clinton as stating that "no company will
live or die because of high price premiums for
AIDS drugs in middle-income countries, but patients may."

Rep. Henry Waxman (D-Calif.), in a statement released after his meeting
with the health minister said the U.S. should
respect Thailand's decision.   But some in the pharmaceutical industry
believe members of Congress will draw a distinction between drugs for
the treatment of AIDS, malaria and tuberculosis, and those for other
diseases such as cancer or heart disease. "How can a chronic,
slow-acting, non-contagious condition be considered a public-health
crisis?" asked one lobbyist. He suggested there could be bipartisan
support for actions against Thailand or other countries that issue
compulsory licenses for non- AIDS drugs.

In March, five Democratic senators and 12 Democratic House members
raised the issue in letters to U.S. Trade
Representative Susan Schwab. They said the use of WTO rules to produce
generic AIDS drugs is one thing, but the
rules were not intended to be used on just any medicine.

While Thailand has argued the issuance of compulsory licenses was
necessary to pay for drugs through its national
health-care system, Tauzin said the country's government, run by the
military after a coup last year, has increased
military spending while arguing it cannot afford to pay for patented drugs.

 Tauzin said the debate will always be controversial because finding the
balance between access to medicines and  paying for research and
development costs is always difficult. At the same time, he expressed
some confidence that PhRMA's arguments would have support.