[Ip-health] Two page summary: What does the TPP do as regards prices of drugs and other medical technologies?

Claire Cassedy claire.cassedy at keionline.org
Wed Jun 10 10:37:38 PDT 2015


http://keionline.org/node/2246

Two page summary: What does the TPP do as regards prices of drugs and other
medical technologies?

Claire Cassedy-June 10 2015

Below is a 2 page summary of the main provisions in the Trans-Pacific
Partnership Agreement (TPP) that will lead to higher prices for drugs and
other medical technologies.

A pdf version of the note is available here:
http://keionline.org/sites/default/files/KEI-TPP-Briefing-2015-2-A2M.pdf

=================================

What does the TPP do as regards prices of drugs and other medical
technologies?

KEI TPP Briefing note 2015:2
June 10, 2015

* The TPP will lock in many of the worst features of US policy regarding
intellectual property on drugs.

* The TPP will mandate extensions of patents terms beyond the 20 years
required by the WTO./1/

* The TPP will mandate the granting of more patents on drugs, than is
required by the WTO, including cases where the inventions do not result in
improved efficacy of a known product./2/

* The TPP will require countries to have state enforcement of private
patent rights, in cases involving patents of dubious relevance or validity

* The TPP will create much tougher standards for damages on patent
infringement, and eliminate space for exceptions or independent statutory
norms for damages./3/

Biologic drugs:

* USTR has proposed that the TPP will create 12 year monopoly on the
evidence that biologic drug is safe and effective,/4/ creating delays in
registration of new biosimilar drugs, and creating conflicts with the
Helsinki Declaration on ethical norms for testing drugs on humans./5/

* USTR has proposed language on damages that would eliminate current caps
on damages for patents on biologic drugs, when drug companies fail to make
timely disclosure of assertions that patents are relevant to a biologic
drug. This increases the risk to manufacturers of biosimilar drugs, because
they have more uncertainty they can sell the new biosimilar products in the
US market./6/

* The current TPP text replaces the current WTO standard for compulsory
licensing of drugs, with a new more restrictive standard./7/

* The TPP will regulate the decisions to reimburse new drugs, and give drug
companies new rights to challenge decisions on reimbursements, when they
are not favorable to the drug company.

* All of the above can be challenged by drug company suits against
governments, in an Investor State Dispute Settlement (ISDS) mechanism,
which will be used to intimidate and fine countries that undermine drug
company profits.

* All of the above will prevent efforts for future health care reforms, by
making it illegal (under the TPP) or difficult to fix the bad policy.

* The US population is aging:8

   - By 2015, the percent of the population 65 or older will be 14.7 percent
   - By 2020, the 65 and over population will be 16.6 percent
    - By 2030, the 65 and over population will be 20.1 percent

* More old people means more cancer, and other expensive illnesses. How are
we going to pay for this, unless we can check runaway prices for drugs?

* Cancer is expected to be a bigger problem for the US than for developing
countries, because their population is younger.

    - In Brazil,
        o By 2015, the percent of the population 65 or older will be 8
percent
        o By 2030, the 65 and over population will be 13.6 percent

    - In China,
        o By 2015, the percent of the population 65 or older will be 9.5
percent
        o By 2030, the 65 and over population will be 16.2 percent

    - In India,
        o By 2015, the percent of the population 65 or older will be 5.5
percent
        o By 2030, the 65 and over population will be 8.2 percent

* More expensive drug prices make cancer treatment unsustainable in the
United States, and result in making our workforce (the people who pay for
everything) less competitive globally.

* For more information:

Andrew Goldman, office 1.202.332.2670, cell +1.917.348.5579
tpp-info at keionline.org
http://keionline.org/
http://lists.keionline.org/pipermail/ip-health_lists.keionline.org

FOOTNOTES

[1] TPP IP Chapter, May 16, 2014 leaked version, Article QQ.E.12
[2] Article QQ.E.1: {Patents / Patentable Subject Matter}
[3] Article QQ.H.4: {Civil Procedures and Remedies / Civil and
Administrative Procedures and Remedies}
[4] Article QQ.E.20
[5] http://www.wma.net/en/30publications/10policies/b3/ For example,
paragraph 18.
[6] 35 USC 271(e)(6)(B)
[7] See discussion here: http://keionline.org/node/2231
[8] United Nations, Department of Economic and Social Affairs: World
Population Prospects, 2012 Revision.
http://esa.un.org/wpp/unpp/panel_indicators.htm



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