Short sighted pharma undermining its own future, says Oxfam
pharmafile | November 30, 2007 | News story | Sales and Marketing |Â Â Â
Pharmaceutical companies are damaging their businesses by blocking access to drugs for millions of people in the developing world, according to a new report.
Aid agency Oxfam said by not putting the issue of at the heart of its business model the industry is failing to ensure universal access, which is preventing it from capturing the full potential of emerging markets.
Oxfam International's executive director Jeremy Hobbs said pharma was 'burying its head in the sand' over the issue.
"The industry must recognize that charging high prices, quashing generic competition, developing medicines only for those rich enough to pay and fighting for harsher patent laws is an ineffective business strategy for new markets, as much as it is a moral outrage."
He added that investors are worried about industry performance and, although they know emerging markets are key for future growth, companies have responded to the challenge of breaking into emerging markets in an ad-hoc and inconsistent way.
"This is bad for the industry and bad for poor people who are still facing devastating diseases like malaria, tuberculosis, asthma, cancer, and HIV/Aids without affordable medicines," he said.
Oxfam's Investing for Life report looks at the world's top 12 pharma companies; their drug pricing policies, their record in developing medicines relevant to poorer countries and their stance on protecting intellectual property rights.
It highlighted a number of shortcomings including:
* Failing to implement a systematic and transparent tiered pricing policy, with essential medicines priced according to the ability to pay
* Neglecting R&D for diseases that predominantly affect poor people in developing countries
* Being inflexible about protecting intellectual property and challenging poor countries in court to stop them using legal public health safeguards
The aid agency notes that some companies are offering differentiated prices, but said this was extremely limited, mainly for high-profile diseases such as HIV and AIDS and often only a reflection of the publicity surrounding the disease or country.
ABPI Director General Dr Richard Barker said: "Oxfam should stop looking to criticise an industry that has done more than any other to help alleviate the health problems of the poorest nations on earth and look to work with us on these issues."
The UK pharma industry body also acknowledged its responsibility to co-operate with governments, philanthropists, world bodies and major NGOs such as Oxfam to try to improve the health of those living in developing nations.
But Dr Barker added: "Access to the right treatment is vital for many of the worlds poor, but this should be combined with addressing the causes of poverty."
