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EU Commission pushes exports of generic drugs to poor countries Bush Victory Chance to Build on Foundation for Consumer Access to Generics

EU Commission pushes exports of generic drugs to poor countries

The European Commission has proposed a licensing system that would make it easier for European generic drug makers to provide treatments against killer diseases such as AIDS, malaria and tuberculosis to developing countries, it said Friday.

The proposal implements a 2003 World Trade Organisation deal aimed at giving developing countries access to essential medicines they would not normally be able to afford.

Although the rules mostly codify a practice that is already in place, they also contain specifics on the labelling and packaging of these cut-price drugs to prevent their re-importation to the west.

"By adopting this proposal, the EU leads the way in ensuring access to affordable medicines for poor countries," EU Trade Commissioner Pascal Lamy said.

"I now hope that it can be taken forward quickly by the EU member states and the European Parliament."

Under the system, individual EU governments would be able to grant "compulsory licences" to generic drugmakers so they can meet demand from poorer countries for drugs those states do not have the capacity to produce themselves.

The international aid agency Oxfam welcomed the proposal, saying the EU "is sending a positive political signal to developing countries that they can override patents to gain access to cheaper generic medicines, vital to combating deadly and debilitating diseases.

"With 14 million people dying every year from infectious diseases, it is essential that developing countries feel confident about supplying cheaper generic medicines to their citizens in the face of hostility from the giant drug companies and the United States government," Oxfam official Michael Bailey said in a statement.

Text of proposed Regulation

Access to essential medecines

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Bush Victory Chance to Build on Foundation for Consumer Access to Generics

The Generic Pharmaceutical Associations (GPhA) today congratulated President Bush on his reelection victory and pledged to continue to work with him and his Administration to reduce the cost of prescription drugs for all Americans. During the past four years, GPhA worked with the Administration to achieve significant reforms to speed consumer access to generic medicines.

"During his campaign, President Bush continually stated his commitment to healthcare cost containment through robust generic competition, and we strongly support his efforts," said Kathleen Jaeger, GPhA President and CEO.

"While a great deal has been accomplished to increase consumers' access to affordable generic pharmaceuticals, significant work remains.

"The President has played a leadership role in recognizing the tremendous value generic pharmaceuticals provide to our nation's health care system.

Given that rising healthcare costs remain a priority issue for America's businesses/employers and consumers, we pledge our cooperation in helping the Administration continue its efforts to reduce the cost of prescription drugs through access to safe, effective and affordable generics," Jaeger said.

GPhA represents the manufacturers and distributors of finished generic pharmaceuticals, manufacturers and distributors of bulk active pharmaceutical chemicals, and suppliers of other goods and services to the generic drug industry. Generics represent 51% of the total prescriptions dispensed in the United States, but less than 8% of all dollars spent on prescription drugs.

The Generic Pharmaceutical Association is committed to improving lives for less. For further information, please contact GPhA at 703-647-2480, or visit web site at http://www.gphaonline.org/.