* My article in BusinessWorld, April 16, 2020.
In an address to the nation last Monday, April 13, about
government policies to fight the China virus, a.k.a. SARS-COV2 which causes
COVID-19, President Rodrigo R. Duterte said that a new treatment, an “antibody”
has been developed by a giant pharmaceutical company. Problem is that “we are
on the last ladder. Ang mauna niyan ‘yung mga mayayaman” (the first to benefit
are the rich).
We take this statement by the President to make the
following arguments.
One, there are many new treatments and new vaccines being
developed by many companies. So not just one or two but more than 300 from at
least two dozen pharmaceutical and biotechnology companies and laboratories.
Vaccines are used on healthy people to train their immune system to recognize
pathogens like the one that causes COVID-19 and neutralize these diseases
before they can harm the body (see Table 1).
Of the 300+ active clinical trials, the majority are
antiviral or target the virus directly, the rest focus on related effects of
COVID-19 like pneumonia, inflammation, monoclonal antibodies, cell therapies,
etc.
Two, some existing drugs can be repurposed to fight the
virus and be manufactured cheaply. Prices as low as $1 to $29 per course of
treatment and still deliver some profits to the innovator companies. They still
need further clinical trials to specifically address COVID-19 but they have
been used in some countries already (see Table 2).
Of the 300+ active clinical trials, more than 200 are
testing medicines previously approved for another indication like the above
drugs, antiviral combinations, and novel compounds.
Three, public health policies, not country wealth, will
determine who will get new medicines and vaccines. There is more competition
among many medicines both existing and under development from many innovator
companies, so physicians and patients will have more choices. Despite this,
some governments are preparing anti-innovation, anti-IPR policies like
compulsory licensing and drug price control that are meant to punish innovator
companies (see Table 3).
Four, new drug price control policies should be reversed
by the President to attract innovators. When any of those new medicines and
vaccines under development become successful and are available in the market,
let the innovators bring their products to the Philippines. Initial high prices
to cover high costs and high risks of developing these products can be
mitigated by bulk purchase, lowering the price. EO 104 aims to impose price
controls at the maximum wholesale price (MWP) then maximum retail price (MRP)
levels and one of the four criteria is if medicines are most prescribed by
physicians. Like compulsory licensing, this is based on envy, penalizing
successful, revolutionary, disease-killer medicines and vaccines. The
anti-rich, anti-innovator philosophy is wrong.
A rich family normally has drivers, helpers, other
household and office workers. When that rich family is infected, chances are
they might also infect their workers, who might infect the neighbors, vendors,
family members and other people they interact with. When that rich family is
protected by new medicines and vaccines, the threat of infection to other people
is controlled. They might even shoulder the price of vaccination of their
household staff. So the rich benefitting from new treatment will also benefit
the poor.
The politics of envy is wrong and based on emotional and
populist sentiments. Policies like compulsory licensing and drug price control
should be avoided and abandoned. Attracting more innovation and competition is
the way to help combat this virus scourge.
---------------
See also:
No comments:
Post a Comment