Posts Tagged ‘big pharma’

Today, on World AIDS Day, President Barack Obama spoke of an “AIDS-free generation.” It’s an audacious and wonderful goal, aiming to build on the decade-long revolution in treatment for people living with HIV/AIDS in developing countries. Dramatically lowered prices for AIDS drugs driven by generic competition have enabled that revolution, which has already saved the lives of millions. President Obama agrees that “treatment is also prevention.” New science suggests that treatment can reduce the risk of transmission by 96 percent.

Unfortunately, patent monopolies and high treatment costs for newer medicines threaten to block the remarkable progress already achieved and impede the goal of “getting to zero.”
To continue the treatment revolution and seek an end to AIDS, we need to expand generic competition.

Case in point: the critical AIDS drug known as Kaletra (lopinavir + ritonavir), sold by the Chicago-based pharmaceutical giant Abbott Laboratories. Abbott’s anti-competitive actions are keeping prices for this important medicine high and limiting the ability of donors and governments to scale up treatment.

Now, a global coalition of health groups is advocating measures to crack down on Abbott’s unjust activities and facilitate competition in the market for Kaletra.

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"Peter Maybarduk"

Peter Maybarduk is Public Citizen’s global access to medicines program director

Among the mother load of Wikileaks documents the media and various government officials are still sorting through are cables citing Public Citizen’s Peter Maybarduk and the work  he does fighting Big Pharma in an attempt to get those in need access to critical lifesaving medicines.

Recently analyzed Wikileaks cables revealed, among other things, that U.S. Embassy officials met repeatedly with multinational pharmaceutical companies, and separately met some of the companies’ “well-placed contacts” in “potentially sympathetic ministries.”  The companies, their government contacts, and Embassy officials shared strategies to prevent or limit Ecuador’s use of compulsory licensing.

One of these well-placed contacts, Ecuador’s former Minister of Health – who has since been replaced – reportedly assured multinational pharmaceutical companies that her office was investigating the business dealings of local medicine suppliers, with the explicit objective of “gain[ing] some leverage.”

The Ministry also reportedly raised a criticism that generics sold under compulsory license might not contain active ingredients. But this confuses patent licensing with the separate and independent drug regulatory approval process.  Compulsory licensing of patents does not, on its own, authorize the sale of any medicine – only the use of the patents.  Typically, and in Ecuador, a separate agency regulates medicines and determines which are safe for consumers.   A product benefiting from a compulsory license must, like other medicines, still obtain the approval of INH, Ecuador’s regulatory agency.

The cables betray a strong U.S. Embassy bias against compulsory licensing, and damage the credibility of assurances offered elsewhere that the United States supports the use of TRIPS Trade Related Aspects of Intellectual Property Rights (TRIPS) flexibilities to promote public health

In spite of efforts to undermine Ecuador’s access protocol, Ecuador issued its first compulsory license in April 2010, enabling generic imports of the HIV/AIDS drug ritonavir.  IFI, the association of multinational pharmaceutical companies operating in Ecuador, issued a statement “democratically accepting” President Correa’s decision.  The United States has refrained from public criticism.

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Robert Weissman

Watch out for corporate junk economics on Capitol Hill.

Rep. Darrell Issa, chair of the House Oversight and Government Affairs Committee, has reportedly asked more than 150 trade associations, corporations and think tanks to provide a wish list of public health, environmental and other public protections that they would like to see eliminated. The purported rationale for such an effort is to spur growth, but in fact this is the cutting edge of a movement to trade away public health, clean air and a stable economy to gin up corporate profits already at record highs.

If Rep. Issa actually wants to focus on job preservation and growth, he might consider the following:

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Dr. Sidney Wolfe, director of Public Citizen’s Health Research Group, joined Democracy Now!’s Amy Goodman and Juan Gonzalez this morning to talk about our new report that shows the pharmaceutical industry has overtaken the defense industry in the amount of fines paid for violating the Fair Claims Act.

Defense contractors,who may never live down their reputation of overcharging the government (remember the $640 toilet seats?), can now offer up that there is a worse industry when it comes to cheating the government. A Public Citizen report released today found that the pharmaceutical industry has now become the biggest defrauder of the federal government.

The study found that pharmaceutical cases accounted for at least 25 percent of all federal Federal Claims Act violation payouts over the past decade, compared with 11 percent by the defense industry.

The fraud results were a key finding from a Public Citizen analysis of all major pharmaceutical company civil and criminal settlements on the state and federal levels since 1991 and found that the frequency with which the pharmaceutical industry has allegedly violated federal and state laws has increased at an alarming rate. Of the 165 pharmaceutical industry settlements comprising $19.8 billion in penalties during the past 20 years, 73 percent of the settlements (121) and 75 percent of the dollar amount ($14.8 billion) have occurred during the past five years.

Many of the infractions, and the single largest category of financial penalties, stemmed from the practice of off-label promotion of pharmaceuticals – the illegal promotion of a drug for uses not approved by the Food and Drug Administration (FDA). Off-label promotion can be prosecuted as a criminal offense because of the potential for serious adverse health consequences to patients from such promotional activities. Another major category of federal financial penalties was purposely overcharging for drugs under various federal programs, which constitutes a violation of the FCA.

Here’s the report:

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