E-DRUG: OXFAM launches "cut the costs" campaign
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[See OXFAMs website at http://www.oxfam.org.uk/cutthecost/index.html
for background and campaign papers. Below the 2 press releases that
OXFAM published yesterday. NN]
Oxfam GB Press Release - 12/02/01
Oxfam launches Cut the Cost campaign
Drug industry price life-saving medicines beyond reach of the poor
Oxfam today accuses the global pharmaceutical industry and rich country
governments of conducting an undeclared drugs war against the world's
poorest countries.
World trade rules on drug patents are raising prices and restricting
access to vital medicines, reinforcing the link between ill-health and
poverty, and widening the health gap between rich and poor.
In two reports published today, at the start of the Cut the Cost campaign,
Oxfam shows how the exclusive marketing rights created by patents are
driving up prices for drugs needed to treat major killers such as HIV/AIDS,
respiratory tract infections, and childhood diarrhea.
The new Oxfam research shows that:
Expensive medicines are already one of the major causes of
poverty and suffering, with some 2 billion people lacking access
to basic health care and 11 million people dying each year from
preventable disease.
Locally produced (generic) low-cost medicines are a lifeline for
poor people. India, for instance, can make antibiotics at an eighth
of the price of patented versions.
Under World Trade Organisation rules patents are protected for 20 years.
While safeguards have been built into the rules allowing governments to
maintain supplies of cheap medicines, Oxfam says these are being
systematically eroded by the threat of US trade sanctions and corporate
bullying. Oxfam cites:
Legal action by 40 drug companies against the South Africa
government with Nelson Mandela named as a defendant.
The case brought by the US against Brazil at the WTO.
The formal threat of trade sanctions against more than 15
developing countries, including India, The Dominican Republic,
and Thailand.
"The consistent theme in each of these cases is an attempt to create
corporate monopolies and restrict the market competition needed to
make medicines affordable to the poor," said Oxfam director of policy
Justin Forsyth.
"This is the shadowy side of globalisation. The WTO must change the
rules that the drug industry is now using to cripple cheap, local
competition which in turn is inflating the cost of new and patented
medicines."
"We know that making life-saving drugs more affordable isn't the whole
answer. However, the balance has skewed too far towards corporate
wealth rather than public health. The availability of cheaper drugs will
save lives," continued Mr Forsyth.
Oxfam is calling for change to the world trade rules and the regime of
pharmaceutical patent monopolies, and an end to bullying by rich
countries. It is also calling for a $5 billion international fund to research
cures for neglected diseases and to subsidise drugs and delivery
systems in poor countries.
Nobel Prize winning aid agency Medecins Sans Frontieres (MSF) has
been campaigning on access to essential medicines. Campaign director
Dr Bernard P*coul said: "MSF is delighted that Oxfam has put its weight
behind this crucial issue. Every day our teams in the field see the
devastating and tragic effects of people's lack of access to life-saving
medicines." VSO health volunteers are also calling for price reductions in
essential medicines as part of the VSO Treatment for Life campaign.
Ends
For further information or interviews contact Matthew Grainger or Arup
Biswas of the Oxfam Media Unit on 01865 312498.
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GlaxoSmithKline risks reputation, warns Oxfam
GlaxoSmithKline (GSK), the world's biggest drug company, faces a
severe risk to its reputation if it does not do more to help poor people get
access to affordable, life-saving medicines, says Oxfam in a new report
today. The consequences of this could include poor staff morale, loss of
investor support and possibly more stringent government regulation.
The "Dare to Lead" report (part of Oxfam's new "Cut The Cost" campaign)
warns that the pharmaceutical industry is in danger of losing public
support as happened to companies associated with human rights
abuses and environmental damage, and calls on GSK to take a lead.
"This is a wake-up call for GSK that they must do more to meet these
challenges. The global pharmaceutical industry runs great risk if it
continues to protect its profits and drug patents at all costs," said Oxfam
Policy Director Justin Forsyth.
Oxfam's main concern is that rules of patent protection are squeezing
low-cost copies of branded medicines out of the market. GSK has
already used these patent rules to challenge the import of low-cost drugs
into Uganda and Ghana, despite them providing a lifeline to millions of
poor people. It is also one of a number of companies taking the South
African government to court over access to medicines.
The industry wants to use patents to keep medicines priced higher for
longer, even in poor countries where 80 per cent of the people pay out of
their own pockets. "We want to see real competition to bring down the
cost of medicines for the poor," said Mr Forsyth.
Oxfam has set key challenges that GSK must meet on its publicly stated
commitment to poor people's access to medicines:
Withdraw its legal challenge to the South African government over
its programme for affordable medicines.
Develop a clear policy to set out how it will meet its commitment to
"maximising affordable access to medicines in the developing
world" within the first three months of its existence as a newly
merged company.
Respect national health policies and strategies.
Commit to forgo patent privileges in developing countries, if these
privileges are likely to lead to an increase in prices.
Ensure that its lobbying positions * individual and in industry
interest associations * respect public health needs.
Donate 0.3 per cent of its annual sales on "blockbuster" drugs to
a $5 billion international research fund, operated by the WHO and
publicly owned.
Ends
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