Fears over new Covid-19 drug patents, profiteering

Leah Feldman, project medical referent, engaging with MSF medical staff about suspected Covid-19 cases in the Humanitarian hub in Brussels, Belgium. Picture: Joffrey Monnier / MSF

Leah Feldman, project medical referent, engaging with MSF medical staff about suspected Covid-19 cases in the Humanitarian hub in Brussels, Belgium. Picture: Joffrey Monnier / MSF

Published Mar 30, 2020

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Cape Town – International medical humanitarian organisation Doctors Without Borders (MSF) has raised concern about profiteering by the pharmaceutical industry on forthcoming drugs, tests and vaccines for Covid-19.

MSF called on governments to prepare to suspend and override patents, and take other measures, including price controls, to ensure availability and save more lives amid the Covid-19 pandemic.

Already, Canada, Chile, Ecuador and Germany have taken steps to make it easier to override patents by issuing “compulsory licenses” for Covid-19 medicines, vaccines and other medical tools. 

Similarly, the government of Israel issued a compulsory license for patents on a medicine they were investigating for use for Covid-19.

In South Africa, the National Consumer Commission (NCC) working jointly with the Competition Commission has launched investigations into allegations of price gouging by 30 retailers.

Following intense criticism from civil society groups and MSF, pharmaceutical corporation Gilead just gave up a special designation from the United States Food and Drug Administration (US FDA) that would have allowed for extended monopoly control over the 20-year patents it has filed for in more than 70 countries for its potential Covid-19 treatment candidate, remdesivir.

Preliminary results of clinical trials using remdesivir to treat Covid-19 are expected in April. However, Gilead has yet to commit to not enforcing its patents globally.

“Gilead has no business profiteering from this pandemic and must commit to not enforce or claim its patents and other exclusive rights,” said Dana Gill, US Policy Adviser for MSF’s Access Campaign. 

“Otherwise, Gilead is setting itself up to charge whatever it wants for remdesivir during this global health crisis, and for years to come. 

"This is even more outrageous when you consider the tremendous amount of taxpayer dollars and public resources that have already contributed to the research and development of remdesivir.”

MSF said removing patents and other barriers is critical to help ensure there are sufficient suppliers selling at prices everyone can afford.

“We know too well from our work around the world what it means to not be able to treat people in our care because a needed drug is just too expensive or simply not available,” said Dr Márcio da Fonseca, Infectious Disease Adviser at MSF’s Access Campaign.

“In countries where pharmaceutical corporations enforce patents, we urge governments to set the wheels in motion to override these monopolies so they can ensure the supply of affordable drugs and save more lives.”

MSF said a US diagnostic test maker just announced they will charge about R351 per test in developing countries, including the world’s poorest countries, where people live on less than $2 (R35.13) per day.

MSF and others’ research on the particular TB test (which uses a similar test cartridge for TB for which the corporation charges nearly R176 in developing countries), shows that the cost of goods, including manufacturing, overhead, and other expenses for each cartridge is as low as about R53, and therefore each test could be sold at a profit for about R88.

MSF warned that high prices and monopolies will result in the rationing of medicines, tests, and vaccines, which will only serve to prolong the pandemic.

Cape Times

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