Us Bill May Deny Access To Affordable Drugs : Analysts

A Bill that has been put on the fast track in the US Congress could torpedo some of the gains of the World Trade Organisation meeting in Doha, pharmaceutical industry sources here warned.

The Thomas Trade Promotion Authority (TPA) Bill (No: H R 3005), put on fast track in the US congress, has been designed to make it more difficult for developing nations to gain access to affordable medicines. First of all, the Bill fails to mention public health considerations. The absence of this could, therefore, result in US negotiators ignoring the plea for access to affordable medicines in trade negotiations.

Industry sources say that if the US Congress passes the Bill, a situation similar to that in textiles could result. In textile negotiations, US negotiators have said that their hands were tied by the US Congress.

Secondly, the Bill seeks accelerated implementation of the TRIPs agreement. This is a reversal of the US's stand at WTO where it offered the least developed nations deferment of the full implementation of the TRIPs agreement for 10 years beyond 2005. Deferment would allow the sub Saharan countries to seek cheap medicines for their HIV/AIDS crises.

Thirdly, the Bill calls for the elimination of government price controls and reference pricing.

Reference pricing, a pricing model used in France, allows the government to price down highly priced drugs, by comparing the price with that of a currently marketed molecule in the same therapeutic segment. Pharmaceutical companies in France have to benchmark the prices of new drugs against the prices of similar drugs.

The government or state-owned insurance companies reimburse expenditure on drugs. But if a pharmaceutical company prices a drug far above the price of a comparable drug, the government has the option of not approving it for reimbursement. This pricing model makes France one of the cheapest drug markets in Europe.

The Indian Pharmaceutical Alliance, an association of 11 large research-based companies, has written to commerce minister Murasoli Maran requesting him to seek clarifications from the US administration as to whether this bill would restrict the flexibility available to developing countries as they try to meet urgent health needs.