Drug pricing heats up BUPA health debate

The question of a new global pricing model for pharmaceutical products was the subject of a debate hosted by the UK private health care  provider and insurer, Bupa, in London. Thomas Pogge, professor of  philosophy and international affairs at Yale University, USA, and Mohga  Kamal-Yanni, senior health and HIV policy adviser for UK-based  international advocacy group Oxfam, outlined their criticisms of the  existing business model employed by drugmakers. They were joined by Jon  Penner, director of government relations for UK-headquartered drug  major GlaxoSmithKline.

Dr Kamal-Yanni grudgingly noted the recent decision by GSK to create a  "patent pool" for potential therapies for neglected tropical diseases,  which allows other organizations to participate in R&D for products  that will primarily benefit less-developed countries (Marketletter  March 30). However, she added that drugmakers must "think of the needs  of developing countries as an integral part of [the] business model,"  but acknowledged that other issues, including infrastructure in poorer  countries, also need to be addressed.

Prof Pogge outlined what he described as "an International Monetary Fund  for Medicines." Firms could enroll some drugs into the scheme under  which the products would be sold at generic prices, but with a  value-based subsidy from the global body to reward innovation. He told  the Marketletter that funding for this project could be diverted from  public payers' reimbursement of patent-protected agents.