PHA-Exchange> WHO Presses Development of Cheap Drugs

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--from Vern Weitzel <vern at coombs.anu.edu.au> -----
  
http://www.forbes.com/feeds/ap/2007/05/23/ap3752158.html

Associated Press
WHO Presses Development of Cheap Drugs
By BRADLEY S. KLAPPER 05.23.07, 3:18 PM ET

The U.N. health agency approved a resolution Wednesday urging experts to find 
new ways of financing medicine and vaccine development to lower drug prices 
and 
improve worldwide availability.

The World Health Organization's members agreed on the resolution by consensus 
without a vote, a day after U.S. delegates walked out of a negotiating session 
aimed at bridging differences among the agency's 193 members over the highly 
divisive issues of drug development, patenting and pricing.

"The United States cannot accept this resolution," said Dr. John Agwunobi, 
U.S. 
assistant health secretary. He told WHO members that the U.S. would not block 
consensus, but would dissociate itself from the statement.

The resolution encourages governments to address "the linkage between the cost 
of research and development and the price of medication." Another 
controversial 
elements is its call for WHO to provide "technical and policy support" to 
countries intending to make use of World Trade Organization rules for 
overriding 
patents.

"I am fully committed to this process and have noted your desire to move 
forward 
faster," WHO Director-General Dr. Margaret Chan said. "We know our incentive: 
the prevention of large numbers of needless deaths and suffering."

Under WTO rules, countries can issue so-called "compulsory licenses" to 
disregard patent rights, but only after negotiating with the patent owners and 
paying them adequate compensation. If they declare a public health emergency, 
governments can skip the negotiating.

Brazil and Thailand recently invoked the procedure to import cheap generic 
versions of American AIDS drugs, among other medicines. Many AIDS patients 
have 
developed resistance to older anti-retrovirals and now need more expensive, 
second-line drugs.

Kaletra, produced by U.S. manufacturer Abott Laboratories, is one of the 
commonly used second-line drugs. But at a cost of about $2,200 per year, it is 
too expensive for developing countries with limited resources.

The compulsory licenses issued by Brazil and Thailand were praised by health 
campaigners, but were criticized by industry groups, and the United States has 
since placed Thailand on its copyright watch list.

Abbott Laboratories (nyse: ABT - news - people ) responded to Thailand's move 
by 
withdrawing seven of its latest drugs from the Thai market. It later 
backtracked 
and announced it would cut its Kaletra price to $1,000 per year.

Brazil proposed the WHO resolution, but for reasons that had nothing to do 
with 
its government's recent measures or criticism it may have received, Rodrigo 
Estrela said at Brazil's U.N. mission in Geneva.

Earlier this month, former U.S. President Bill Clinton announced agreements 
with 
generic drugmakers Cipla and Matrix to produce anti-AIDS drugs that would 
generate an average savings of 25 percent in low-income countries and 50 
percent 
in middle-income countries.

The international aid group Oxfam says compulsory licensing almost never 
occurs 
because developing countries face pressure from rich governments acting on 
behalf of their drug companies. Its report last year on drug access cited WHO 
statistics that 74 percent of AIDS medicines are still under monopoly, and 
that 
77 percent of Africans still lack any access to AIDS treatment.

"The current system of financing drug research and development is through high 
drug prices. This is what drug companies say is necessary to finance 
innovation," said Ellen 't Hoen of Medecins Sans Frontieres, also known as 
Doctors Without Borders.

"But we are not getting the innovation we need. Many countries are seeing 
that," 
she said. "We need to find a means for financing research and development 
without high drug prices."


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