Oxfam statement on the Revised Drug Strategy
at the World Health Assembly, May 2001

I am speaking on behalf of Oxfam, an international NGO which supports health and development programmes in over 80 countries. We work in partnership with governments, civil society and communities to overcome poverty and suffering. In recognition of the heavy cost for poor households of accessing health care, especially medicines, Oxfam is campaigning for access to affordable drugs.

Oxfam recognises the value of responses to the health crisis in developing countries such as global funding initiatives, Global Public Private Partnerships and drug price cuts. However, although welcome, they represent a partial answer. We believe that a more fundamental, coherent and sustainable response is needed, which focuses on three areas: research and development for medicines for neglected diseases, the role of patent protection and service delivery.

FIRST, Oxfam recognises the role of patent protection in stimulating research & development. It is the lack of market incentive that prevents drug companies from investing in R&D for diseases of poverty. Stronger patent rules will not overcome this obstacle.

SECOND, generic competition plays a major role in reducing prices of medicines. Since last year, generic competition and public pressure pushed pharmaceutical companies to make dramatic price cuts. Three years ago, the benchmark for an antiretroviral triple therapy cocktail was US$10,000. Indian generic companies offered prices of around US$350, thus setting a new benchmark for further price cuts. Last week, generic companies announced triple therapy at a new low price-around US$250. However, the TRIPS agreement threatens to undermine the crucial role of generics in price reduction.

Experience has shown that when countries try to enact legislation to implement the TRIPS safeguards, and to ensure protection of public health, they are heavily pressured by the pharmaceutical lobby and northern governments, especially the US. South Africa and Brazil are examples. There are many more who may find it difficult to use the so-called safeguards outlined in the TRIPS Agreement.

THIRD, in recognition of the chronic under-funding of health services, Oxfam supports calls to set up a global health fund to ensure access to basic health services and to medicines.

Oxfam believes the World Health Assembly has a global responsibility and opportunity now to address these issues by:

• Calling for substantial public investment into a global R&D fund for neglected diseases, to which all countries worldwide should contribute, according to their means.
• Requesting the TRIPS council review of the agreement should ensure public health needs override commercial interests. Requesting WHO to support developing countries in the process of this review.
• Demanding that rich countries and pharmaceutical companies stop pressurising developing countries when they attempt to use the safeguards and other mechanisms provided for in TRIPS.
• Requesting WHO to provide intensified technical support in interpreting TRIPS in favour of public health. WHO should provide clear statements of support to countries facing problems because of the TRIPS agreement.
• Mobilising massive efforts to increase resources from developed country governments and the international community to support a global health fund to strengthen health systems and access to medicines. The proposed global fund should be within the UN system in order to avoid undue corporate influence. It should also extend beyond HIV/AIDS to other public health priorities. The guiding principles should include: working within an equitable national health policy framework providing comprehensive prevention and treatment services including ARVs, ensuring a system of transparency and accountability at national and international levels and proper consultation with civil society. The money should be new money and milestones to measure achievements should be set up at the start based on actual benefits to poor people's health. It is important that the fund is open to tender for best prices from both patented and generic drugs and that it is not undermined by the structural problems inherent in TRIPS.

Thank you.