As Millions Are Denied Medicines, Big Pharma Buries Its Head in the Sand

Pharmaceutical industry undermines its own future as millions of poor
people denied access to medicines

MANILA, Philippines — The pharmaceutical industry is denying medicines to millions of poor
people and undermining its own future because companies refuse to
shift to responsible business practice in developing country such as
the Philippines, according to a report by international agency Oxfam.

Oxfam publishes its report, ‘Investing for Life’ that looks at the
world’s top 12 pharmaceutical companies, including their stance
on protecting intellectual property rights, drug pricing policies, and
their record in developing medicines needed in poorer countries.

“The industry is burying its head in the sand. More than 85% of world
consumers are underserved or have no access to its medicines. The
industry must recognise 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,” said
Jeremy Hobbs, Oxfam International executive director.

Oxfam cites the aggressive efforts of the Pharmaceutical Healthcare
Association of the Philippines (PHAP), a group of foreign
pharmaceutical companies operating in the country, to block the
passage of the law seeking flexible patent protection on drugs and
medicines. PHAP is opposing the bill that will allow the entry of
bio-equivalent but more affordable life-saving medicines for the
people while espousing that this law will not bring down the prices of
medicines.

“The industry’s active lobbying for stricter patent rules and legal
challenges to governments’ use of public health safeguards under the
WTO patent rules is one of the shortcomings on the potential of
pharmaceutical companies to contribute to universal access to
medicines,” said Shalimar Vitan, Oxfam’s Access to Medicines Campaign
Coordinator in the Philippines.

Oxfam’s report finds the pharmaceutical industry failing to capture
the full potential of emerging markets touted as the “new frontier”
for its business success. According to a major consultancy firm, a
loss of faith in the industry on the part of its investors has so far
cost pharmaceutical’s shareholders $1 trillion dollars.

“Investors are worried about the industry’s performance. They know
that emerging markets are key for the industry’s future growth but
companies are inconsistent and hesitant to respond to the challenge of
breaking into emerging markets. 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,” Hobbs said.