Pharmaceutical industry threatens to undermine G8 commitments to universal access

19 April 2007

Commitments by G8 nations to achieve universal access to HIV treatment by 2010 face being undermined by the monopolies of big pharmaceutical companies and pressure exerted on developing countries not to use TRIPs flexibilities.

Through the UK Consortium on AIDS and International Development and its Stop AIDS Campaign (SAC), the International HIV/AIDS Alliance has been actively involved in preparations for this year’s G8 meeting to ensure that the opportunity for urgent and decisive action is taken and the promise of universal access is kept.

The 2007 G8 process, hosted by Germany, is a critical opportunity to make sure governments keep their promises to achieve “universal access to comprehensive prevention programmes, treatment, care and support by 2010”.

The SAC has identified four key areas that the G8 must deliver on to make the goal of universal access real. These are:

• financing universal access;

• strengthening health systems;

• ensuring affordable medicines;

• supporting women and children.

The SAC’s G8 policy paper outlines these four key areas in more detail.

It is morally and politically imperative that the G8 deliver on all these areas for an effective, comprehensive and sustainable response. The UK and other G8 member countries must advocate strongly to ensure that G8 2007 does not betray the promises of universal access, and finally delivers for communities across the world.

Protecting TRIPS flexibilities

Improved access to medicines is a key component of the G8 commitment and is crucial to achieving universal access. Increased price competition, by allowing generic competition, is needed to make essential medicines and treatment affordable for all.

On 21 March, the Stop AIDS Campaign brought hundreds of campaigners together from across the UK to present to Hilary Benn, the UK’s Secretary of State for Development, what they wanted the UK to do in order to deliver on the commitment to universal access.

The campaign event took place just before the G8 Development Ministers’ Meeting, at which the International HIV/AIDS Alliance’s senior policy advisor Anton Kerr represented what the consortium of over 80 UK-based NGOs working on HIV and development would like to see the UK deliver in the upcoming G8 meeting in Germany.

The Secretary of State was urged to take positive steps to secure a G8 financing plan for universal access to treatment. The campaigners also asked what steps the UK government will take to support countries to use the TRIPs[1] flexibilities that enable countries to legally issue compulsory licenses to obtain cheaper generic medicines to address HIV and other public health crises.

The Stop AIDS Campaign brought to the attention of the Secretary of State Abbott Laboratories’ decision to withdraw registration applications for a range of medicines as a ‘punishment’ to the Thai government for using its legal WTO rights to protect public health and issue compulsory licences.

Compulsory licenses are a legal means for a country to produce or import generic versions of a patented drug (or any other product). Patent protection rules normally prevent copying of any invention that is still under patent. However, a waiver (TRIPS flexibilities) has been allowed since 2001 that allows countries to break patents in public health emergencies. Compulsory licences allow generic competition, which often dramatically reduces medicine prices.

Many countries will be unable to achieve universal access to HIV treatment by 2010 because of the high prices of patented drugs. Bilateral free trade agreements and the bullying actions of big companies such as Abbott mean that few developing countries so far have dared to use their rights to TRIPs flexibilities, meaning that millions of people go without essential treatment.

Since November 2006, Thailand has issued compulsory licenses for three medicines, including the HIV drugs efavirenz and lopinavir/ritonavir (brand name Kaletra). In retaliation, Abbott decided last month to withdraw all outstanding applications to register drugs in Thailand, including Aluvia, the new heat-stable version of Kaletra, which is an essential second line HIV treatment. Further, Abbott has decided that it will not allow the use of any of these medicines in Thailand until the government revokes its compulsory licenses. As well as denying access in Thailand, Abbott’s actions also send a negative message to any other developing country that considers using TRIPs flexibilities to protect the public health of their citizens.

An issue for the G8

On 22 March, the Alliance was part of the Stop AIDS Campaign delegation that met with the UK Prime Minister’s advisors on Africa and Development. We presented to them the actions that we believe the UK should take to ensure that the UK Government and G8 deliver on their commitments to HIV. Campaign representatives spoke in detail about the actions of Abbott Laboratories and the detrimental impact this will have on the G8’s ability to fulfil their universal access commitments by 2010. The Stop AIDS Campaign asked the UK Government to take action against Abbott Laboratories immoral actions and to publicly support countries’ use of TRIPS agreement.

The Secretary of State raised the Thailand situation at the G8 Development Ministers Meeting as promised on 26-27 March 2007, and made specific reference to Abbott’s actions. He successfully negotiated the inclusion of the following text into the Chair's Summary of the meeting:

“G8 Development Ministers reaffirm their commitment to come as close as possible to universal access to HIV/AIDS prevention, treatment and care by 2010. However, the price of some drugs remains prohibitive for many countries, and more needs to be done to help lower their cost including the use of TRIPS flexibilities to the fullest extent.”

On 10 April, Abbott announced a reduction in the price of Kaletra and Aluvia (Lopinavir/ritonavir) to US$1,000 per patient per year for 40 middle-income countries.[2] The Indian generic producer Cipla had announced on 1 March that a generic version of heat-stable lopinavir/ritonavir (called Lopimune) will be made available at US$1,560.

While the price reduction is welcome for middle income countries, it still does not change the actions taken by Abbott in Thailand to obstruct the process of compulsory licensing and withdraw its application to register a number of medicines for use there. Aluvia is therefore denied to people in Thailand until Abbott reverses its decision and reinstates its applications.

The International HIV/AIDS Alliance joins our partners in Thailand and campaigners around the globe in calling on Abbott Laboratories to reverse their actions which prevent the people of Thailand from accessing essential medicines. We join the call for Abbott to refrain from further pressurising the Thai government to withdraw compulsory licenses that enable access to life-saving medicines.

The actions of Abbott Laboratories need to be brought to the attention of key policy makers, campaigners and governments so that we can work together to ensure that our joint efforts to promote public health and work to achieve universal access to HIV treatment for all by 2010 are not compromised by the monopolies of big pharmaceutical companies.

[1] Trade Related Intellectual Properties [2]The Abbott price for low-income countries was set at US$500 in 2006