From: <b class="gmail_sendername">Global Health Check</b> <span dir="ltr"><<a href="mailto:oxfamblogs@gmail.com">oxfamblogs@gmail.com</a>></span><br><div class="gmail_quote"><br><br><div class="HOEnZb"><div class="h5">
Global Health Check has posted a new item, 'Ensuring the availability of<br>
medicines in Burkina Faso: a shared responsibility'<br>
Up to 90% of people in developing countries still buy medicines through<br>
out-of-pocket payments. Spending on medicines can be catastrophic. Medicines<br>
also constitute a major part of national health budgets (second only to staff<br>
costs). For these reasons, ensuring low and affordable medicine prices is<br>
crucial for all countries seeking to move towards universal health care, and to<br>
reduce economic burdens on households.<br>
<br>
Securing adequate supplies of medicines is a shared responsibility. It is<br>
dependent upon national governments implementing the right<br>
policies, pharmaceutical companies producing affordable and appropriate<br>
medicines, and the international community promoting policies to ensure<br>
developing countries can obtain quality medicines at affordable prices. This is<br>
where recent progress on driving down medicines costs in Burkina Faso offers<br>
some interesting insights.<br>
<br>
The ‘Burkinabe’ system is based on a rationalised supply structure combined<br>
with a policy to promote generic medicines, with prices set each year by<br>
ministerial decree. This ensures generic medicines are available throughout the<br>
country at a reasonable price. According to the World Health Organisation (WHO),<br>
countries could save up to 5% of their health expenditure by reducing<br>
unnecessary expenditure on medicines and using medicines more appropriately.<br>
Underuse of generic medicines is a key driver of inefficiency. Generics cost<br>
between 20% and 90% less than branded medicines and promoting rational use is an<br>
effective method to reduce health spending.<br>
<br>
In Burkina Faso all medicines supplied to the public health sector come through<br>
CAMEG (Office for the Purchase of Essential Generic Drugs), a private<br>
not-for-profit organization that exclusively sells generics. An exception is<br>
made for hospitals to allow the procurement of brand name medicines from private<br>
wholesalers when needed, e.g. when no generic version exists. As well as<br>
supplying the public sector CAMEG also caters for private pharmacies, NGOs, and<br>
the Global Fund, which use it as an intermediary for the supply of medicines for<br>
HIV, tuberculosis and malaria. CAMEG is highly effective and efficient in its<br>
procurement strategies. While African governments typically pay 34% above the<br>
international reference price, a 2010 study on the prices, availability and<br>
affordability of medicines in Burkina Faso shows that the prices offered by<br>
CAMEG are similar to international reference prices.<br>
<br>
In terms of availability, Burkina Faso scores quite well. The same 2010 study<br>
shows that a basket of 50 medicines was available in 73% of the health centres,<br>
compared to an average availability of 40% in the African region and less than<br>
60% in all WHO regions. However, while in the lower level facilities<br>
availability is very good, hospitals worryingly lack medicines (65% for generics<br>
and 1.2% for branded medicines). As a consequence patients who cannot be treated<br>
in lower level facilities are forced to buy their medicines from private<br>
pharmacies where prices are considerably higher.<br>
<br>
Access to medicines to treat chronic non-communicable diseases such as cancer or<br>
diabetes and newer HIV/AIDS medicine is also problematic. These medicines are<br>
often protected by patent rights in key producing countries such as India, South<br>
Africa and Brazil, and so generic equivalents are not available for countries<br>
like Burkina Faso. In order to address this challenge Burkina Faso should<br>
urgently follow the advice of UNAIDS, WHO and UNDP by fully implementing<br>
available TRIPS flexibilities.[1] This should include nullification of any<br>
intellectual property rules for pharmaceuticals, since as a least developed<br>
country, Burkina Faso is not required to implement TRIPS consistent legislation<br>
for medicines until at least 2016. At present, the country, by adhering to the<br>
Bangui agreement, is exceeding its obligations under TRIPS.[2] This policy<br>
should be reviewed. In the future, when the Government must fully accede to<br>
TRIPS, it should make full use of compulsory licensing to ensure its population<br>
has access to such medicines.[3] <br>
<br>
Burkina Faso has achieved major success in driving down the cost of medicines,<br>
at least in the public sector. However, mark-ups along the supply chain often<br>
result in final prices at the point of delivery being considerably higher. The<br>
system is also still largely based on cost recovery and 37% of medicines costs<br>
are financed by the patient. Medicines remain the single largest healthcare cost<br>
for households. Given that the majority of the population lives on less than<br>
$1.25 a day, the cost of medicines, even at low prices, represents a major<br>
challenge.<br>
<br>
Affordability of medicines could be improved by addressing the various mark-ups<br>
in the system, improving medicines availability in hospitals and in the longer<br>
term through investments in local production of medicines either at the national<br>
or regional level. In the short term however, Burkina Faso is dependent on<br>
imports of generic medicines especially from India. This is another reason why<br>
India should not accept European demands to introduce stricter intellectual<br>
property protection, which is likely to hinder generic competition and lead to<br>
higher overall prices for importing low-income countries.<br>
<br>
[1] TRIPS is the Intellectual Property framework to which all members of the<br>
World Trade Organization have to adhere. However, in order to protect public<br>
health, some flexibilities and safeguards have been explicitly introduced. These<br>
were reconfirmed in the Doha Declaration on TRIPS and public health. <br>
[2] The Bangui Agreement (1977) governs intellectual property in the 16 member<br>
states of the African Intellectual Property Organization (AIPO). This agreement<br>
is incorporated as national law. It was revised in 1999 to bring the<br>
legislation into line with the TRIPS Agreement.<br>
[3] Compulsory licensing is when a government allows a third party to produce<br>
the patented product or use the patented process without the consent of the<br>
patent holder. This is one of the flexibilities provided in the WTO Agreement on<br>
TRIPS on patent protection. While under the WTO agreement the compulsory<br>
licence would be open to manufacturers all over the world, the Bangui agreement<br>
limits its use to manufacturers in the African region. Considering the<br>
region’s limited production capacity, this should be reviewed.<br>
<br>
Katrien Vervoort was the Essential Services Policy Officer for Oxfam<br>
Solidarité, Belgium until December 2011.<br>
<br>
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Anna Marriott<br>
<a href="mailto:Email%3Aamarriott@oxfam.org.uk">Email:amarriott@oxfam.org.uk</a><br>
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