Athens urged to import generic drugs

Source: Financial Times

March 17, 2013 10:29 pm
By Andrew Jack in London and Kerin Hope in Athens

Public health advocates are petitioning the Greek government to
overturn patent protection on costly medicines and import them from
low-cost generic producers to ease the burden on the country’s medical
system.

Essential Inventions, a US-based lobby group, has asked Andreas
Lykourentzos, Greece’s health minister, to use article 14 of the
country’s patent law, which permits the use of compulsory licences
authorising cheaper versions in exchange for a modest royalty to the
patent holders.

The group says it can then negotiate with cheaper suppliers in India,
Canada and elsewhere to provide sources for drugs such as those for
cancer and HIV at typically 1-10 per cent of the current European
price.

Such a change would mark an escalation of efforts its advisers have
made in India, Thailand and elsewhere to invoke concessions in the
World Trade Organisation rules to override intellectual property rules
on public health grounds.

David Hammerstein, a health advocate and member of Essential
Inventions’ board, said: “We can’t have a situation where people
suffering because of the financial crisis are worse off within Europe
than outside.”

The action comes as Greek patients complain about difficulties in
obtaining affordable healthcare as the country struggles to meet
austerity measures to overcome its budget crisis.

SFEE, the pharmaceutical industry trade body, warned last week that
the system was “at breaking point” and that some vital medicines might
not be available after repeated failures of the government to pay €2bn
in outstanding debts, leaving some companies at risk of collapse.

Essential Inventions says its proposal is simpler than attempting to
negotiate price discounts with patent holders, which are concerned
that any reductions will be followed elsewhere in Europe or trigger
“parallel trade” of the cheaper medicines out of Greece and into more
expensive EU markets. If the authorities refuse, it will lobby civil
society groups and threaten to sue the ministry.

Mr Lykourentzos is being pressed by Greece’s international creditors
to implement more cuts, fuelling fears of a drugs shortage, especially
of medicines to treat cancer and HIV/Aids.

Scores of Greek wholesalers and about 700 pharmacies nationwide have
been accused by the health ministry of increasing exports at the
expense of local patients. Some have claimed they have no option
because of long delays in being paid for supplying the state health
system, Eoppy. “The system is in a state of near-collapse and we have
to find cash where we can,” said Amvrosios Argyris, a pharmacist.

Patients complain of shortages of drugs that used to be available from
state pharmacies and hospitals free of charge. Amalia Stefanou, a
neurological patient, said: “I have to ring round different pharmacies
to check whether my prescription is available. Then I pay the full
amount without knowing when I’ll be reimbursed [by Eoppy].”

Greek authorities said this month they had forbidden parallel export
of drugs while threatening to fine drug companies not providing their
products.

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