World Health Organization (WHO) Director-General Dr. Margaret Chan addressed civil society and policy-oriented “think tanks” on November 12, 2015, and “challenge[d]” them to “help with issues that keep me awake at night.” Specifically, she mentioned the problems with pharmaceutical patents, high drug prices as a barrier to access, and the current system of incentives for new drug innovation. Dr. Chan also raised concerns about the the TPP, which she said may raise drug prices and harm access to generics.
The relevant portion of her remarks are reproduced below, and the full speech, which also discusses other public health measures, is available on the WHO website.
Intellectual property rights and the patent system continue to raise questions about fairness. I have been hearing some serious concerns that the Trans-Pacific Partnership, the biggest trade agreement ever, may adversely affect the market for generics and biosimilars and increase the cost of medicines.
I would like to hear your views. If these agreements open trade yet close access to affordable medicines, we have to ask: Is this really progress at all, especially with the costs of care soaring everywhere?
And they are soaring. Genuine therapeutic breakthroughs increasingly come at an astronomical cost. Some of the new drugs for hepatitis C cost US$ 1000 a pill. In poorer countries, adding 1 new drug to the standard regimen for treating breast cancer greatly increases the cost.
High prices block access. Hepatitis C affects around 150 million people, mostly living in poor countries. Unless we get these prices down, many millions of people will be left behind.
Let me ask you. What is a fair profit for a pharmaceutical company? To what extent does the market exclusivity conferred by patent protection actually stimulate innovation? I have heard this widely-held assumption challenged by several economists.
More on Dr. Chan’s remarks from Reuters:
Tom Miles, 12 November 2015, “UPDATE 1-Pacific trade deal could limit affordable drugs – world health chief,” Reuters.