RP anti-piracy ‘strides’ cited

… but more needs to be done, says US pharmaceutical group

A WASHINGTON-based group of drug firms has retracted its earlier petition to the United States government that the Philippines be placed on the priority watch list of countries notorious for intellectual property (IP) violations.

The Pharmaceutical Research and Manufacturers of America (PhRMA) has instead recommended that the Philippines be merely retained in the regular watch list, after observing “notable strides” in the government’s willingness to hear out the private sector.

This new position was submitted last month to the US Trade Representative (USTR) office which announced an out-of-cycle review of the IP regimes in the Philippines and Thailand, a move that could either result in removal from the watch list or a downgrade to the priority list by early 2011.

The USTR effort is designed to guide Washington’s fight against IP rights violations abroad and, in extreme cases, could trigger trade sanctions against countries notorious for piracy.

“While challenges remain, the Philippine Government has made notable strides in engaging with the research-based pharmaceutical industry on critical intellectual property and market access issues,” PhRMA said in a document dated Dec. 10.

“As a result, PhRMA is reviewing its 2010… position that the Philippines be identified on the Priority Watch List… We do not recommend any change in status for the Philippines from that accorded by the United States Trade Representative in 2010, which placed the Philippines on the Watch List under the most recent Special 301 Review,” it said.

The group said, however, that it will continue working with the government to address “outstanding concerns” with provisions in Philippine laws which they claim could encourage the entry or production of counterfeit drugs and also limit their members’ access into the local market.

Among these laws is Republic Act No. 9502, or the Universally Accessible Cheaper and Quality Medicines Act of 2008, which the group claims to “limit the patentability of new forms and uses of medicines.”

PhRMA also opposed a provision in the law which allows non-prescription products to be sold without their original containers in retail outlets, saying this could be abused by counterfeiters and thus affect public safety.

PhRMA also took issue with the Maximum Drug Retail Price Mechanism which was authorized by the law, saying the scheme “has recently impacted [sic] a number of PhRMA member companies’ access to the Philippine market.”

“There are several improvements that need to be made for the Philippines to establish a favorable environment for innovative pharmaceuticals and attract the type of world-class investment that would underpin and support the achievement of the country’s health care delivery goals and, thereby, also assure Filipino citizens of timely access to high-quality, cost-effective treatment and care,” the group said.

“PhRMA’s member companies are confident that substantial progress can be made as the consultative process moves forward,” it said.

The group counts as members Abbott, Bayer Healthcare Pharmaceuticals, Bristol-Myers Squibb Co., GlaxoSmithKline, Johnson & Johnson, Novartis Pharmaceutical Corp., and Pfizer, Inc. according to its Web site.

Member companies are estimated to have invested some $45 billion last year in biomedical research. –JESSICA ANNE D. HERMOSA, Senior Reporter, Businessworld