E-DRUG: shortage of ACT for malaria (3)
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Hi Wilbert and E-druggers,
I am interested to know what other e-drug readers see as the risks when international organizations tie themselves to one supplier, whether through long-term purchasing agreements or via other forms of partnerships with industry.
On the one hand, I see the benefits to creating a situation of bilateral dependence, where there would have otherwise been unilateral dependence - in situations where the drug is patented or single source, and where such bilateral dependence results in achieving decreased prices or at least, more secure supply (as has been the case with advanced purchase contracting for vaccines). However, in such situations, it must be important to define the contract terms and length in a way that does not impede the development of a longer-term competitive market.
The Novartis partnership is an interesting one because artesunate isn't patented. So in these circumstances, I'm quite interested to know what others think would have been (and would be today) the best course of action to ensure that a competitive market for ACT supply evolves.
My interest in this question comes partly from a study I've been working on for DFID which analyses the evolving strategies of Indian pharmaceutical producers (See: http://www.dfidhealthrc.org/shared/publications/Issues_papers/ATM/DFID_India_China_aw.pdf)
This leads me to question how the international community can better tap into quality, low-cost suppliers to improve drug supply to developing countries, including not only affordably priced existing medicines, but also development of new medicines for neglected diseases?
What barriers to entry exist for these suppliers, in terms of their supply for diseases of public health importance? (e.g Does the WHO/Coartem arrangement create barriers to entry for other ACT suppliers?
Does the WHO/AAI arrangement create barriers to entry for generic FDC producers?)
regards
Cheri Grace
Health Systems Specialist,
DFID Health Systems Resource Centre
CGrace@london.edu