Some principles are so important that
they cannot be violated even in a time of
national emergency. One of those, it now
appears, is the principle of patent rights for
multi-billion dollar pharmaceutical companies.
Bayer, the German pharmaceutical giant,
finally reached agreement with the US
Department of Health and Human Services over
the price at which it would sell its antibiotic
CIPRO to our government. CIPRO is believed
to be one of the most effective treatments for the
possible strains of anthrax infection that we
might confront, and the government has decided
to stockpile it.
Since Bayer cut its price from $1.77 to
$0.95 per tablet, some see this latest agreement
as a victory for the public interest. But that is
debatable.
"Relying on just one manufacturer to
produce our entire supply of the pharmaceutical
is simply not the best way to ensure an adequate
supply," Senator Charles Schumer wrote in a
letter to Health and Human Services secretary
Tommy Thompson. It was pressure from
Schumer, as well as from consumer groups, that
led to the price cuts.
This pressure caused Thompson to
reverse his position of just a week earlier and
threaten to buy generics if Bayer didn't cut its
price. But why be concerned about patents
during a health emergency? The government has
the right, under more than one law, to purchase
generic drugs. Bayer will not necessarily be able
to produce the required stockpile as quickly as it
could be obtained if all sources, including the
generic ciprofloxacin, were available. Why
should we take that risk?
CIPRO will still be making a small
fortune here, even at the reduced price. Like
most drugs, ciprofloxacin is cheap to produce:
the generic version in India sells for about 3
cents per pill.
But Thompson's threat to go the generic
route was probably not all that serious. The
$350 billion pharmaceutical industry is one of
the largest corporate campaign contributors,
currently favoring Republicans by about than 2
to 1. These people got their money's worth:
Bayer, the producer with the patent monopoly,
will remain the sole supplier for the US market.
This is especially important to them right
now. While millions of Americans are worried
about anthrax, the Bush Administration is
preparing for a new round of negotiations next
month at the World Trade Organization.
Remember that last meeting in 1999 that fell
apart under clouds of tear gas in Seattle? It has
taken nearly two years for the trade ministers to
put the pieces back together. And this time, the
problem of patents is high on the agenda.
Our government (with some help from
other rich country governments and of course
the big drug companies) has spent the last
decade trying to force poor and middle-income
countries to pay patent-protected prices for
essential medicines. They have brandished the
weapon of economic sanctions, filed lawsuits,
and -- most recently -- initiated complaints at
the WTO. But they have been losing ground
since last year, when the US press discovered
that millions of people would have to die in
order for these patent rights to be protected.
Among the proposed human sacrifices
are 36 million people in developing countries
who have HIV or AIDS. This, too, is a health
emergency, with thousands dying every day.
Many of them could be saved with drugs that
generic producers can sell for $350 a year, but
cost $10,000 here in the United States.
During the past year the drug companies
were shamed into offering some discounts on
AIDS medications in poor countries. But for the
most part they did everything they could to keep
their patent monopolies intact. When the trade
ministers meet in Qatar beginning November 9,
the developing countries will try to clarify their
rights under WTO's TRIPS (Trade Related
Aspects of Intellectual Property Rights)
agreement. They want to be able to produce or
purchase generic essential medicines.
Leading the fight against them will be
our own US Trade Representative. Now we can
see why the public safety of Americans must
take a back seat to patent rights, even in the
presence of unknown threats of bio-terrorism.
How can our leaders tell the rest of the world
that patents are more important than people, if
they don't practice what they preach here at
home?
Mark Weisbrot is co-director of the Center for
Economic and Policy Research (www.cepr.net),
in Washington, DC.
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