PhRMA: Compulsory Licensing Trend Dangerous

Washington, D.C. (May 14, 2007) — PhRMA President and CEO Billy Tauzin issued the following statement today, warning foreign governments to carefully consider the consequences of issuing compulsory licenses:

“PhRMA is deeply troubled by the recent trend toward the issuance of compulsory licenses for pharmaceutical products. This misguided focus on short-term ‘budget fixes’ could come at a far greater long-term cost, potentially limiting important incentives for research and development that are necessary to positively impact the lives of millions of patients worldwide.

“The decision to issue a compulsory license should not be taken lightly. While this seemingly quick and easy solution to budgetary concerns may be appealing on the surface, we are convinced that it will only create needless pain and suffering in the future for a new generation of patients.

“Last year, America’s pharmaceutical research companies invested more than $55 billion to bring new and innovative products to market to provide treatment for virtually every disease known to mankind. This research is costly and time consuming, but it is undertaken because of our industry’s continued commitment to improving and saving lives everywhere.

“For instance, there are currently 77 medicines and vaccines in development for HIV/AIDS and opportunistic infections. Almost 20 years ago, this life-threatening disease was considered a death sentence. Today, HIV/AIDS is a manageable chronic disease for many people, thanks to the cutting edge medicines developed by America’s pharmaceutical research companies.

If the result of these costly and lengthy innovative processes is the theft of the patented intellectual property, then companies will have less incentive to develop new life-saving treatment options. And even though today’s medicines have been effective in treating many diseases prevalent throughout the developing world, what happens if currently available options cease to work? What happens when new patients become resistant to old drugs?

“According to public reports, our member companies have significantly reduced the costs of HIV/AIDS medicines in recent years and have offered to do even more, only to be rebuffed by short-sighted foreign governments.

“Americans understand the danger of being ‘pound wise and penny foolish,’ but they should not be the only patients from around the world to shoulder the burden of costly research and development.”

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The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading pharmaceutical research and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, and more productive lives. PhRMA companies are leading the way in the search for new cures. PhRMA members alone invested an estimated $43 billion in 2006 in discovering and developing new medicines. Industry-wide research and investment reached a record $55.2 billion in 2006.

PhRMA Internet Address: www.phrma.org

PhRMA en Español: www.nuestraphrma.org

For information on how innovative medicines save lives, visit: www.innovation.org

For information on the Partnership for Prescription Assistance, visit: www.pparx.org

For information on the danger of imported drugs, visit: www.buysafedrugs.info