E-DRUG: Millions for Viagra, Pennies for the Poor (cont)
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I have read this article with great interest, but why is everybody so
naive? The pharmaceutical industry is one like every other business,
and it doesn't make the slightest difference whether one
manufactures vacuum cleaners, margarine, guns, automobiles or
whatever. The goal is to make money and if one wants to make
money one needs capital, and that capital is provided by the
shareholders, who expect revenues.
[snip]
Remember the definition of capitalism: You have two cows, you sell
one and buy a bull. The socialist gives one of his cows away to his
neighbour. Who will in the end produce the milk?
Leo Offerhaus' analysis of the Pharmaceutical industry is quite accurate.
Clearly there is no profit motivation for sales in most developing
countries but then there is also no profit loss from cut price sales in
these countries as well. Parallel importing and compulsory licensing would
have no effect on the bottom line of these companies. The danger for them
is having consumers in developed countries say "How is it possible to
produce and sell drugs in poor countries at one tenth or twentieth of the
price I have to pay in the US?"
The key issue to understand is what motivates these companies and then
find ways to work within these frameworks. In some cases this may be
massive support for tropical disease programs such as the ivermectin, or
albendazole or achromycin donations. In other cases it may be guaranteeing
purchases of product such as Hepatitis B vaccine, in other situations it
may be setting price controls or establishing pricing regulations and in a
few extreme situations compulsory licensing may be necessary.
There are many areas where common interest exists between drug companies
and essential drug programs such as quality assurance, attacking
counterfeit drugs in the market, assisting in the conducting of clinical
trials etc and these are positive areas where cooperation is possible. It
is unrealistic to expect brand name companies to support generic promotion
programs, objective drug information projects or efforts to enforce the WHO
guidelines on drug promotion.
So my approach is to identify those areas where cooperation is possible and
to recognize that in some areas conflict is inevitable.
Richard Laing
Associate Professor of International Health
Boston University School of Public Health
715 Albany St, T4W, Boston MA 02118 USA
Tel 617 414-1444 Fax 617 638-4476
E-mail richardl@bu.edu
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