[Ip-health] BioMed Analysis: Pooling patents for HIV drugs

[Judit Rius]

Interesting article on the UNITAID patent pool for HIV-AIDS medicines.

"An alternative, proposed by the advocacy group Knowledge Ecology Internati=
onal, among others, is to create a multi-million dollar prize fund to tempt=
 companies into joining the pool. Those who join the pool become eligible f=
or prizes, which could, for instance, be allocated to companies that have t=
he biggest effect on public health.

The idea is gathering support from several leading academics, such as Mary =
Moran, head of the pharmaceutical research and development project at the G=
eorge Institute in Sydney, Australia, as well as donors such as the Clinton=
 HIV/AIDS initiative.

Some developing countries also support the idea. Bangladesh, Barbados, Boli=
via, and Suriname have written to the WHO (who host and administer UNITAID)=
 asking it to consider the prize fund/patent pool model. They suggest that =
ten per cent of donor drug purchase budgets go towards this fund, which cou=
ld run to millions. No doubt, donors and nongovernmental organisations will=
 dispute the exact percentage, or even the mechanism for financing the fund=
, but they and governments need come up with a workable plan before the mom=
entum slips away."



BioMed Analysis: Pooling patents for HIV drugs
Priya Shetty
28 September 2009
Source: http://www.scidev.net/en/opinions/biomed-analysis-pooling-patents-f=
or-hiv-drugs.htm

A UNITAID patent pool could revolutionise HIV treatment and research in dev=
eloping countries =E2=80=94 if payment can be agreed, says Priya Shetty.

When GlaxoSmithKline set up a patent pool earlier this year to stimulate re=
search into neglected diseases, it was little surprise that they excluded p=
atents for their extremely lucrativeHIV drugs.

But there is a strong humanitarian case =E2=80=94 now promoted by the healt=
h organisation UNITAID =E2=80=94 for pooling HIV drug patents. A UK parliam=
entary group on AIDS estimatesthat by 2030, 50 million people will need HIV=
 drugs. Already, over six million people with HIV/AIDS are dying because th=
ey have no access to lifesaving medicine.

UNITAID's proposed patent pool could change all that. It would work by coll=
ecting patents held by companies, universities or research institutes and m=
aking them available to the developing world for drug production or researc=
h at the cost of an affordable licence fee or royalty.

This differs from the way drug patents usually work. When a company creates=
 a new drug, the patent protection lasts about 20 years. It prohibits other=
 companies from producing and selling the drug or using it for research. Oc=
casionally, the patent-holder may give other organisations access to its pr=
otected knowledge, but usually only in an extremely restricted capacity and=
 at high cost =E2=80=94 which puts low and middle income countries out of t=
he running.

Patents ensure maximum profits and allow companies to recoup the millions o=
f dollars they spend getting a drug to market. But they also mean that peop=
le who can only afford cheap 'generic' copies of drugs must wait decades. A=
nd researchers cannot develop new combination treatments =E2=80=94 recommen=
ded by the WHO as the best way to reduce the risk of drug resistance =E2=80=
=94 if one of the drugs is under patent.

The UNITAID HIV patent pool would mean generics could be made immediately, =
and research could begin into new drug combinations and child-friendly form=
ulations.

Right idea, right time?

Patent pools aren't the only way of ensuring the developing world has acces=
s to drugs. Some countries, like Brazil, India and Thailand, have issued co=
mpulsory licences to allow manufacturers to produce generic versions of pat=
ented drugs. These nations are as aggressive in protecting their right to m=
ake cheap life-saving medicines as pharmaceutical companies are in protecti=
ng their share prices.

But compulsory licensing is a difficult path, fraught with complications in=
cluding legal actions from pharmaceutical companies. And while it makes exi=
sting drugs affordable, it doesn't stimulate research. UNITAID's patent poo=
l could revitalise innovation, saving lives in the developing world.

And there's good reason to believe that the organisation can make a pool wo=
rk. UNITAID has a track record in lowering the cost of HIV/AIDS drugs throu=
gh bulk purchase agreements. It also has the expertise of Ellen t'Hoen, a k=
ey ex-member of the Access to Medicines campaign M=C3=A9decins Sans Fronti=
=C3=A8res uses to improve poor people's access to antiretrovirals.

Some pharmaceutical companies are also, at least in principle, coming round=
 to the idea. Johnson and Johnson, Gilead, and Indian generics-maker Cipla =
have been openly supportive, and Novartis and Merck are reportedly in talks=
 with UNITAID. Even GlaxoSmithKline, in a recent letter to the UK's Guardia=
n newspaper, say they haven't ruled out joining the patent pool.

Payments and prizes

But UNITAID still needs to come up with an incentive for the companies to j=
oin =E2=80=94 they are unlikely to do so from corporate goodwill alone.

Current proposals focus on royalty payments for voluntary patent contributi=
ons.These royalties would "not be insignificant", t'Hoen told SciDev.Net. B=
ut given the enormous profits that HIV drugs can bring =E2=80=94 Tenofovir =
costs =C2=A33,500 (US$5,500) in developed countries per patient every year =
=E2=80=94 companies are unlikely to settle for royalties alone.

An alternative, proposed by the advocacy group Knowledge Ecology Internatio=
nal, among others, is to create a multi-million dollar prize fund to tempt =
companies into joining the pool. Those who join the pool become eligible fo=
r prizes, which could, for instance, be allocated to companies that have th=
e biggest effect on public health.

The idea is gathering support from several leading academics, such as Mary =
Moran, head of the pharmaceutical research and development project at the G=
eorge Institute in Sydney, Australia, as well as donors such as the Clinton=
 HIV/AIDS initiative.

Some developing countries also support the idea. Bangladesh, Barbados, Boli=
via, and Suriname have written to the WHO (who host and administer UNITAID)=
 asking it to consider the prize fund/patent pool model. They suggest that =
ten per cent of donor drug purchase budgets go towards this fund, which cou=
ld run to millions. No doubt, donors and nongovernmental organisations will=
 dispute the exact percentage, or even the mechanism for financing the fund=
, but they and governments need come up with a workable plan before the mom=
entum slips away.

UNITAID's proposal for a patent pool comes as the World Intellectual Proper=
ty Organization (WIPO) is revitalised under new leadership. The new head, F=
rancis Gurry, is trying to revive the organisation's development agenda, an=
d t'Hoen said WIPO has offered UNITAID technical support.

UNITAID now need to make sure they successfully broker what could be a huge=
ly important deal for the developing world.

Journalist Priya Shetty specialises in developing world issues including he=
alth, climate change and human rights. She has worked as a news editor at N=
ew Scientist, assistant editor at The Lancet, and commissioning editor at S=
ciDev.Net.

Judit Rius Sanjuan
Attorney
Knowledge Ecology International
www.keionline.org / www.cptech.org
Phone: +1.202 332 2670, ext 18