The Pharmaceutical Industry Essay Example for Free

The Pharmaceutical Industry Essay 1) Describe the nature of supplying drugs to emerging markets at an affordable price without undermining their profits 2) Research and analyze in depth the effectiveness of one proposed policy response to this issue. (To use economics theory to analyze)    A drug described as a pharmaceutical product used to treat illness, made up of a chemically defined amount of pharmaceutically active ingredients. On the contrary a vaccine is a pharmaceutical product, a biological medicine is difficult to homogenize since it is designed using living systems. It is basically used for preventive purposes. Although the relative importance may vary, a number of facts that impact access to drugs vaccines are similar. [Milstien et. al, 2005] Patents, the monopolies granted by the State for a specified length of time for the commercial exploitation of a scientific or technological invention[navy Blue] are considered important incase of drugs so as to limit general access, as compared to vaccines. However the organizations are dependant on their patents the challenges faced by them, for gaining business; often disagreeing on this by saying that the patent protection has been exaggerated in World Health Organization list only 90% drugs are off- patent. [Strain 2007]   Ã‚   AIDS, a health calamity of unparalleled magnitude, caused by a virus in an individual, the plague must be seen as an economic, social political occurrence killing millions, while the international organizations have been trying to control the epidemic since the past 2 decades after identifying HIV, primarily caused by peoples sexual risk behavior . Leading organizations like the Pharmaceutical Research and Manufacturers of America (PhRMA) states that patents that range up to thousands of dollars, are vital for the protection of investments involved in research development of innovative drugs, failure of which may make it difficult to recover their investments for further projects. Some countries like India do not recognize the patents therefore successfully manufactures generic AIDS cheaply, however obstructions like primitive distribution systems cultural taboos did not allow them to succeed. Mainly the health problems are caused due to many factors overshadowing the under developed world like poverty, lack of health services, clean water proper sanitation. Non availability of efficient affordable medication treatments is the most important factor in this crisis. It is estimated that as a result of many infectious diseases like as acute respiratory infections, diarrhoeal diseases, malaria and tuberculosis around 14 million people die globally. Mostly in Africa South- East Asia infectious diseases alone are responsible for 45% deaths annually, the rate is high even in developing countries. [The health crisis in developing countries] In the developing countries each day around 8000 patients die of AIDS, in contrast to the West, where people always have had access to competent medicines    The year 2001 witnessed a rigorous increase in the AIDS crises in Africa, with statistics declaring more than 30 million HIV positive citizens. An important fact to consider is that the highly patented HIV drugs are more acute than any other disease. AIDS HIV patients in developed countries are getting extensive benefits since 1996, as a result living better improved lives through the expensive combinational anti-retroviral drug therapy (or HAART) which costs about 15,000 US Dollars per year. People living in under developed countries like Africa cannot afford such expensive treatments having only $10 per person [Watts, 2002]. This catastrophe has affected people all around the world, putting the Pharmaceutical companies in a dilemma, by having to choose between their philanthropic penchants their duty to achieve a profit. Especially the international community being burdened with extraordinary pressure regarding worldwide health issues, the pharmaceutical industry has become a fundamental feature of humanitarian work.   Ã‚   According to surveys, from the 39 million people who are suffering with AIDS globally, 25 million are in sub- Saharan Africa with life expectancy to fall by 20 years by the year 2010 due to AIDS HIV. 5 million people got infected in 2004, while 3.1 million died from AIDS. In Zimbabwe, life expectancy at birth was 34 years in 2003, compared with 52 years in 1990, Infection rate are still ranging high especially in China, ex- Russian federation states. The fundamental subject is the high costs of AIDS treatments. The standard cost of 1 years worth the standard treatment, a combination of 3 antiretroviral drugs, is estimated at US$10,000-15,000 as a result, the treatment out of reach of most people in the developing world, where 95% of the people with HIV are from (As quoted in The health crisis in developing countries). 9 out of 10 people infected with the virus are not receiving the required help in order to reduce the disease to a chronic condition. In the global market, pharmaceutical companies in Africa, Asia China represent less than 7%. From 1975 to 1996, among 1223 pharmaceutical products developed to fight diseases, only 11 were designed specifically for tropical illnesses. Maybe in 5 – 7 years vaccines will be developed for AIDS, the Global AIDS Fund needs between $ 10 to 15 billion to fight AIDS, however only $ 6.1 billion was received in 2004 or the US AIDS relief program. [The AIDS Epidemic and Pharmaceutical Companies, 2005] The Trade- related Intellectual Property Rights Agreement (TRIPS) in year 1995, guaranteeing protection of patents across the international market included pharmaceutical products along with other services in the World Trade Organization structure.   Ã‚   The recent years have seen the wealthy governments focusing vast amounts to treat the issues highlighting the world such as lack of clean water, the treatments of infectious diseases that eradicated 11 million people every year, the AIDS death rate is now exceeding by 3 million annually according to the World Health Organization (WHO). After increased pressure by the charity groups around the world such as Oxfam Medicins sans Frontieres to promote the easy availability of drugs, one of the leading global pharmaceutical organizations has planned to lower the cost of its HIV AIDS medicines in 63 poorest countries of the world. It is therefore extremely important for the pharmaceutical industries to take part in the fight against global health issues. However their main focus is the safeguarding of revenue not working on humanitarian inclination, often adopting strategies that eventually damage the mounting issues. [Strain 2007] Additionally, prices in the United States range much higher than in Britain, according to a recent U.S. General Accounting Office report.    The rise in the worldwide health crisis proves the philosophical malfunction of the international organizations to save lives decrease suffering. The subject has raised a number of issues on the pricing of drugs especially in poor countries gaining a lot of publicity when a case has been filed in South Africa court addressing the pharmaceutical companies to license their patents an announcement by Cipla, an Indian pharmaceutical firm that they would copy U.S. firms AIDS drugs sell them at sell them at cost to countries in Africa. [Rapp, 2002] Around 40 South African pharmaceutical companies are suing the South African government at the Pretoria High Court on March 5th to shield their profits ignoring the demise of millions of lives by HIV.   Ã‚   On the contrary, a realistic approach by the United Kingdom has been taken up leading to control, devoid of turmoil by a compromising agreement regarding the Pharmaceutical Price Regulation Scheme (PPRS) between the British government the U.K. pharmaceutical industry governing the Prices of medications for the next 5 years under the National Health Service (NHS) involving limitation of profits to 17 -21% of engaged funds as well as pricing freedom for new products. In the advanced countries, HIV AIDS infected people are living a better life, since they have better medical treatments available. In [Geffen, 2001] Justice Edwin Cameron also HIV positive stated that, There are people throughout Africa†¦and nearly 34 million people in our whole world who are this moment dying. And they [are] dying because they dont have the privilege that I have, of purchasing my health and life.   The pharmaceutical industry had 625 registered lobbyists in DC in the year 2001 in 1999-2000 a combined lobbying having budget of $197 million. [Rapp, 2002] An industry having so much power, they are more focused to gain more revenue. It is a fact that expensive drugs like Prozac Viagra are more easily available promoted than any other life saving drug. It is important that the drug industries develop some concern about the suffering humanity design some strategies to control the major health issues in the world today. The governmental authorities should take steps to motivate the firms to allocate special funds low priced medicines especially targeted towards deserving nations. 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Nathan Geffen, Applying Human Rights to the HIV/AIDS Crisis [May 6, 2001] [accessed 19 January 2008] http://www.cceia.org/resources/publications/dialogue/2_06/articles/646.html Cheap AIDS drugs for poor countries [June 7, 2001] [accessed 19 January 2008] http://edition.cnn.com/BUSINESS/programs/yourbusiness/stories2001/aids.drug.price/