FDA chief attacks Europe price controls
pharmafile | November 24, 2003 | News story | |
The chief US medicines regulator has attacked price controls in Europe, saying the practice denies its patients access to medicines and even drives up prices in the US.
FDA Commissioner Mark McClellan made the outspoken remarks in a speech to pharma executives in Cancun, Mexico, shortly after the latest WTO meeting held there.
Mr McClellan singled out price-controlled systems of countries such as France and Germany, claiming they risk undermining global pharmaceutical R&D. He said that the US consumes a fraction of prescription drugs worldwide, yet pays around half the total amount spent globally; in contrast Germany, the world's third largest economy pays less than 5%.
"Some of the world's richest countries are driving the world's hardest bargains," he said.
He added: "Reducing the needed incentives to develop new medicines through excessive price controls is slowing the process of drug development worldwide. If we continue on our current path of trying harder and harder to shift the costs of developing new medicines to someone else, rather than paying our fair share, everyone's effort to get a free ride on new drugs will grind the global development of new drugs to a halt."
Mr McClellan's remarks have been prompted by a growing protest against the high prices paid by US patients, in particular senior citizens.
A bill to allow parallel imports of cheaper medicines from lower priced countries including the EU – has now been put forward, despite steadfast opposition from the FDA, working closely with the Bush administration.
The Agency is also looking to legally block the growing trade in imports from Canadian Internet pharmacies, claiming the standards and safety of the medicines cannot be guaranteed.
Meanwhile, US politicians are struggling to reach agreement on how to reform the Medicare health insurance scheme to include coverage for prescription drug costs.
"I don't have all the answers, but I think it is time to start the international discussion. For example, one way might be to aim for worldwide drug prices in proportion to a nation's income," Mr McClellan added, pointing to the recent breakthrough on access to medicines in the developing world as the first step in this direction.
"I know that many are complacent with the current situation, in which the United States has borne the bulk of costs. I know it is not clear how to work together internationally to create better ways to share the burden than are provided by our current trade agreements. But it is clear to me that we cannot carry the lion share of this burden much longer. And the consequences for world health will be grave, if we don't come up with a better alternative than each nation only acts with its short-term interest in mind."
The European Commission recently launched a 'call for action' from its member states to increase the competitiveness of Europe's pharmaceutical sector, suggesting that allowing companies to set their own prices across the Union would stimulate competition and benefit patients.
But member states fiercely guard the control of their national health systems, over which the Commission has virtually no say.
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