David Henry from the University of Newcastle, Australia, and Joel Lexchin from the University of Toronto, Canada, discuss how rising prices of medicines are putting them beyond the reach of many people, even in rich countries. In less-developed countries, they state, millions of individuals do not have access to essential drugs, and drug development is failing to address the major health needs of these countries. The authors also comment how the prices of patented medicines usually far exceed the marginal costs of their production -- while the industry maintains that high prices and patent protection are necessary to compensate for high development costs of innovative products, there are doubts about the figures that form the basis of these claims.

David Henry comments: "The international pharmaceutical industry manufactures and distributes many good drugs, displays generosity in its philanthropic activities, and has an important role in maintenance of manufacturing standards. However, evidence shows that companies have shifted their core activities from discovery and development of innovative drugs to marketing of products that keep profit to a maximum in high-income countries."

He adds: "Access to important drugs by low-income countries is generally agreed to remain grossly inadequate. Some international manufacturers have responded to this crisis by sharp reductions in prices of some products and by donations. These moves largely seem to have been in response to external pressures, especially bad publicity and generic competition, rather than initiatives of the companies themselves. Restoration of true market forces and fair pricing of drugs is a better long term solution to shortages than 'ad hoc' donations. These issues are particularly relevant and timely
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Contact: Richard Lane
richard.lane@lancet.com
44-207-424-4949
Lancet
14-Nov-2002