Copyright 2001 Times Newspapers Limited
Sunday Times
(London)
April 22, 2001, Sunday
SECTION: Business
Paul Durman
Drugs boss calls for Marshall plan to end Aids crisis
TACKLING the Aids
crisis requires a Marshall plan for Africa, the chief executive of Glaxo Smith
Kline (GSK), Britain's leading drugs maker, said this weekend.
Jean-Pierre Garnier said the wealthy G7 nations should provide funding
to buy medicines through an existing and proven agency, such as the United
Nations Aids programme. In Britain, Gordon Brown, the
chancellor, has led attempts to establish a new global fund that will buy
treatments for Aids and malaria.
The Marshall plan was
the American-led scheme that tackled Europe's widespread hunger, unemployment
and housing shortages after the second world war.
The newly merged GSK,
a leading producer of Aids therapies, has effectively accepted that it can no
longer profit from selling medicines at western prices to impoverished nations
hit by the Aids epidemic.
GSK has borne much of the attack on the
industry's role in denying medicines to dying patients. Stunned by damaging
publicity, 38 pharmaceutical companies last week abandoned their challenge to a
South African law that sought to provide access to cheaper drugs.
The
sustained campaign against the industry forced GSK and other companies to slash
their prices.
Garnier said providing Aids and HIV sufferers with access
to effective treatments has "nothing to do with the patents issue" that was at
the centre of the South African court case. Even when supplied at cost, at about
$ 700 (Pounds 485) a year, western therapies remain too expensive for South
Africa and other African countries that are struggling to cope with millions of
Aids sufferers.
What is needed, Garnier said, is a partnership between
the developed nations and bodies such as the World Health Organisation and the
United Nations to provide the necessary financial help. Jeffrey Sachs, director
of Harvard's Center for International Development, recently
estimated that it could cost $ 7billion a year to treat the 25m HIV-infected
people in sub-Saharan Africa.
This is a far greater cost than the $ 400m
a year that Unicef spends each year on providing vaccines and other help to
children. However, Garnier suggests this is a proven model that could be adapted
for Aids.
Although cast as a villain by activists, Garnier has made the
access issue one of his priorities. He said: "We cannot continue to discover
more medicines and not make them available to more people."
Garnier said
the pharmaceutical industry needed to change its "business model". This will
clearly involve offering cut-price drugs to poorer nations.
He urged the
industry not to duck out of the limelight now that the pressure from the South
African case has eased. He said: "This is no time for the industry to desert its
seat in the orchestra."
Yusuf Hamied, the chairman of Cipla
Pharmaceuticals who has offered to supply a cocktail of Aids drugs for as little
as $ 350 a year, said governments should be free to compulsorily license
patented products to tackle their own medical emergencies.
He pointed
out that GSK was embroiled in scores of legal actions with companies wanting to
produce cheap generic versions of Paxil/Seroxat, the group's big-selling
anti-depressant. "You are spending 10% of your R&D budget on research and
90% on maintaining your monopoly," said Hamied.
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©2001 by the President and Fellows of Harvard College.
Last revised 4/2/2001