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SARS strengthens case for drugs at affordable cost — Singapore, others may join India's stand at WTO

P.T. Jyothi Datta

NEW DELHI, May 12

EVEN as the killer-flu SARS (Severe Acute Respiratory Syndorme) affects the health of economies in the Asian region — it just may add fuel to the fire-power of India and other developing economies in their stand on public health at future World Trade Organisation (WTO) meetings.

"The emergence of SARS has helped validate India's stance. Given the US stand that the scope of the Doha Declaration be restricted to 15 infectious diseases — India had pointed out earlier that public health emergencies was something that individual countries need to take a call on, before invoking compulsory licensing — to bring in generic drugs and make medicines accessible to people. The disease list is a dynamic one," a pharma industry representative, familiar with developments at WTO consultative meetings, told Business Line.

At a meeting of WTO member-governments in December 2002, the US remained isolated in its view to restrict the scope of the Doha Declaration to tuberculosis, AIDS and malaria and a list of 15 infectious diseases. "The spread of SARS has made countries like Singapore join the chorus, with India and other emerging economies. The spreading killer flu made it imperative for authorities to make medicines accessible at reasonable prices," the industry representative said, adding that Singapore had the second largest incidence of SARS, after China.

"A public health crisis varies from country to country — what could be AIDS in one, could be anthrax in another. SARS was unheard of a year ago, but today, governments across the world are trying to strategise to block its spread," the official observes.

According to Mr B.K. Raizada, an industry expert on Intellectual Property Right-related matters, "The issue boils down to simplifying modalities for invoking compulsory licensing and speeding-up implementation, without compromising the rights of the innovator. In the case of a public health crisis, a single licence should be adequate. The country should intimate the WTO and royalties could be paid to the original patent holder of the drug."

Meanwhile, Indian pharma representatives have been taking "the spirit of the Doha Declaration" to various global forums. At a deliberation organised by the Stanford Law School, Nicholas Piramal's senior representative, Mr Harinder Sikka also pointed out that the US view of restricting the scope to infectious diseases was contrary to TRIPS, which took a consolidated view on healthcare.

Expressing India's concerns, his presentation said: "TRIPS did not define national emergency... .it is the responsibility of each country to judicially use the provisions of compulsory licensing." Elaborating on why the existing imbalance needed to be set right, the paper observed: "MNCs generate over 80 per cent of their revenue from sales in developed markets where the patent regime is in full force. Almost the entire research is focused on the disease pattern of the developed world. In 1998 — out of $70 billion, only $300 million was for HIV/AIDS. Only $100 million to malaria. Between 1975 and 1996, 1223 new drugs were developed worldwide — only 13 were developed to treat tropical diseases; only 4 were direct result of pharma industry's efforts."

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