an Eldis Resource
Beyond philanthropy: the pharmaceutical industry, corporate social responsibility and the developing world
How to assess and improve access to medical treatment in developing countries
Authors:
K. Bluestone; A. Heaton; C. Lewis; Oxfam International; Volunteer Service Overseas
Publisher:
Save the Children Fund , 2002
This paper argues that responsible pharmaceutical companies must have policies on access to treatment for developing countries which include the five priorities of: pricing; patents; joint public private initiatives (JPPIs); research and development (R&D); and the appropriate use of drugs. The industry, however, currently defines its policy on access largely in terms of philanthropic ventures.
The report welcomes signs of increased flexibility in the industry’s approach to access to treatment in developing countries by some companies in some areas. However, the key finding is that critical challenges remain, particularly on the issue of pricing.
The main conclusions of the report include:
- A systematic approach to drugs pricing could lower prices sustainably if delivered through an efficient system; it would also strengthen the industry’s potential to improve global health with little effect on profits. Current ad hoc commitments cannot achieve the predictability, sustainability and efficiency necessary to meet the needs of developing countries.
- Pharmaceutical companies remain unwilling to adopt a flexible interpretation of intellectual property rights to enable better access to medicines. This lack of flexibility will contribute to higher prices in developing countries.
- There has been a considerable increase in the number of JPPIs which include donations, R&D, and price reductions. Companies clearly consider them to be a sufficient response. The authors argue that for diseases affecting both rich and poor countries, a more flexible approach to patents and pricing would be a more effective means of ensuring that developing countries have access to medicines.
- Despite examples of increased commitment to R&D into tropical diseases, only a few companies report that they have dedicated tropical disease research units. Companies are also reluctant to publish the value or proportion of R&D expenditure on such diseases.
- Companies are not prepared to make greater efforts at self-regulation in areas of marketing and drug-safety monitoring in countries with weak regulatory systems. Disclosure to stakeholders on the appropriate use of medicines is particularly weak.
The report provides benchmarks against the five critical policy areas. These are intended to help investors, companies, governments, NGOs, and the public in general to judge whether a company is taking into account its impact on developing countries. [adapted from author]
