Pfizer

The US government tries to enforce strict patent laws all over the world. These Intellectual Property Rights (IPRs) that protect newly invented drugs (up to 20 years), enforced by the World Trade Organisation, are preventing access to essential medicines by the developing world. And patent protection of drugs can prevent poor countries from producing cheaper local versions. In Thailand, for example, Pfizer used to be the sole supplier of fluconazole, used in treating cryptococcal meningitis, an opportunistic infection affecting 1 in 5 of the country's AIDS patients. The company charged a daily price of £8.75 ($14), making the drug largely unaffordable. The market exclusivity on the drug expired in 1998, leading to its local production at 5% of the 1998 price (Oxfam Press Release).

Oxfam has recently accused Pfizer of moral bankruptcy by pricing life-saving drugs beyond the reach of millions of poor people. Oxfam particularly criticizes Pfizer’s aggressive enforcement of patents in poor countries, forcing prices up. ‘The company’s bottom line seems to matter more than the lives of the world’s poorest people’, said Oxfam Policy Director Justin Forsyth. ‘Pfizer’s market value exceeds the combined national incomes of the 18 biggest countries in sub-Saharan Africa, but it heartlessly continues to lead the industry’s campaign for global monopolies on life-saving drugs while people die from treatable diseases.’

In sum, the pharmaceuticals industry’s claim that high profits (and strict patent laws, and high drug prices) are needed to secure the high costs of R&D (and ‘safeguard the development of new, life-saving drugs to fight diseases like cancer and Aids’) does not hold ground!

First, drug giants like Pfizer spent much more money on marketing and advertising than on R&D. Second, much money is being channeled to the Executive’s bank account. Third, large part of research is publicly funded. Fourth, by way of creative accounting corporations make their R&D look bigger. Fifth, it’s not true that the enormous corporate profits come from innovations (as is being claimed), it is the artificially high drug prices and strict patent laws (out-pricing drugs for poor people) that are securing the industry’s profits. Finally, one should not forget about the industry’s extensive influence on policymaking processes. The industry’s ability to push for regulations and laws that suit their own interests is obviously highly to the industry, and yet another critical way to secure its high profits.

In South Africa, where 4.5 million people have HIV, no one can afford Pfizer's killer prices. AIDS activists in South Africa and the United States have been demanding that Pfizer drop the price or allow generic production of the drug. Instead, Pfizer opposes efforts by foreign companies to make and sell the same or similar medicines at considerably lower prices. In South Africa, Pfizer's patent means that even the government must pay $4.15 (£2,83) per pill, while in Thailand, where Pfizer does not have a patent on fluconazole, the drug is only $0.29 (£0,19) per pill. In Kenya, where Pfizer also has exclusive rights, fluconazole costs $18.00 (£12,28) per pill -- more expensive, even, than US prices.

While Pfizer blocks access to affordable, generic fluconazole, countless numbers of people with AIDS die preventable deaths. In an unprecedented resolution, the United Nations Subcommission for the Protection and Promotion of Human Rights recently found that the WTO's rules on pharmaceutical patents are anathema to human rights, and will effectively cripple efforts by developing countries to deal with epidemics of disease. The resolution states that there are "apparent conflicts between the intellectual property rights regime embodied in the (WTO rules), on the one hand, and international human rights law, on the other."

Pfizer keeps insisting that strict patent rules are needed to stimulate innovation. ‘Patent protection makes drug discovery possible and profitable. It is the incentive that justifies investing billions of dollars and decades of time to find new cures. Eliminate patent protection, and the incentive for original research is removed and every research-based pharmaceutical company becomes a generic drug manufacturer, and the discovery of new medicines slows to a trickle.’ As pointed out earlier, this reasoning is based on nothing but false grounds.

Every time high-level, international meetings on health or drug-related issues come up, NGOs, activists and other concerned people seek extra attention for the pharmaceutical industry’s irresponsible and unscrupulous attitude towards the Aids crisis. At the same time, drug companies –being in the spotlight- take advantage of the opportunity to work on their image. Just before the AIDS2000 conference in Durban, Pfizer announced the company would donate fluconazole (Diflucan) free of charge to people with HIV/Aids.

The Treatment Action Campaign (TAC) supported the donation. However, TAC was soon to find out that the Pfizer still considered profits more important than people’s lives. It seemed the donation was highly limited, and could not be considered something else than a fraud to protect the company’s profit. Pfizer insisted on limiting its donation to a period of two and a half years -the exact period when their fluconazole patent or exclusive licence to sell will expire. Second, Pfizer refused to extend the offer to treat thrush (see TAC leaflet). Third, Pfizer refused to include countries other than South Africa in the offer. And finally, Pfizer refused to reduce the price to lower than R4.00 per capsule for all other uses. On top of that, Pfizer’s unwillingness to negotiate is condemning countless people to suffering and possible death because they cannot afford the unreasonable price that the company is putting on the drug.

More recently, as mentioned earlier, Pfizer has announced that it will offer Diflucan at no charge to HIV/Aids patients in 50 poor countries where HIV/Aids is prevalent. No dollar or time limit this time. The Diflucan Partnership was developed in cooperation with the United Nations and the World Health Organization and expands on the aforementioned partnership with South Africa. The announcement came just weeks before the UN’s special session on HIV/Aids in June 2001. However, and this cannot be overstated, donations are meaningless as long as drug companies like Pfizer keep overpricing their drugs and enforcing strict patent laws.

The profit incentive caused a sudden revival of interest in indigenous knowledge. The progression of biotechnology opens up new possibilities to exploit natural resources in the Third World. Pharmaceutical companies increasingly take genetic material and/or indigenous knowledge from the South to make fortunes from natural remedies, without asking for consent, let alone paying any kind of compensation. After patenting the ‘new inventions’, the Western drug industry can exploit the South even further by forcing developing countries to pay high royalties over the patented drugs imported from the West --drugs that originate from their soil and knowledge! The following case is just another sad example of this general practice, also labeled as bio-piracy.

Pfizer has recently been accused of stealing an ingredient of the Hoodia cactus which African tribesmen have used for thousands of years to stave off hunger and thirst on long hunting trips. The Kung bushmen who live around the Kalahari desert in southern Africa used to cut off a stem of the cactus about the size of a cucumber and much it over a couple of days. According to tradition, they ate together so they brought back what they caught and did not eat while hunting. Now the Hoodia is at the centre of a bio-piracy row.

Last April, Phytopharm, a small firm in Cambridgeshire, said it had discovered a potential cure for obesity derived from an African cactus. It emerged that the company had patented P57, the appetite-suppressing ingredient in the Hoodia, hoping it would become a slimming miracle. Phytopharm’s scientists boasted it would have none of the side effects of many other treatments because it was derived from a natural product. The discovery was immediately hailed by the press as a ‘dieter’s dream’ and Phytopharm’s share price rose as City traders expected rich returns from a drug which would revolutionise the £6bn market in slimming aids. Phytopharm acted quickly and sold the rights to license the drugs for $21m (£14,321m) to Pfizer.

While the drug companies were busy seducing the media, their shareholders and financiers about the wonders of their new drug, they had forgotten to tell the bushmen, whose knowledge they had used and patented. Phytopharm’s excuse appears to be that it believed the tribes, which used the Hoodia cactus, were extinct. The tribesmen were angry, saying their ancient knowledge had been stolen, and planned to launch a challenge and demand compensation. Speaking to the Observer, the lawyer for the bushmen Roger Chennells said: ‘They [the bushmen] are very concerned. It feels like somebody has stolen their family silver and cashed it in for a huge profit. The bushmen do not object to anybody using their knowledge to produce a medicine, but they would have liked the drug companies to have spoken to them first and come to an agreement.’

Pfizer ‘illegally tested drugs on children’ The Guardian reports that Pfizer has been accused of irregularities during a clinical trial in Nigeria. The company is said to have used an experimental drug on sick children during a major outbreak of meningitis, without official approval. A Nigerian doctor employed by Pfizer to run the clinical trial in Kano said that the letter certifying approval by the ethics committee at the hospital where the children were treated was probably written a year after the experiment took place. The hospital’s medical director, Sadiq S Wali, talking to the Washington Post, confirmed this. He told the Post that the document was ‘a lie’. He said the hospital had no ethics committee at the time of Pfizer’s trial.

The revelations were hugely embarrassing to Pfizer. The company still insists there was a philanthropic element to the trial. ‘Médecins Sans Frontièrs (MSF) was using the only drug that was available in Nigeria –one that had not been allowed in the west for 50 years because of the side-effects’, said Pfizer’s spokeswoman, Kate Robins, whereas Pfizer introduced not only its experimental drugs, but also the ‘gold standard’ drug used in the west. Asked why, in that case, Pfizer had treated only 200 children when the epidemic killed 15,000, she added: ‘Science governs our decisions.’ The experimental drugs used, Trovan, has since been licensed, but not for children. However, it is not marketed in Nigeria. Like all new drugs, which have a 20-year patent protection, the cost is too high for developing countries.

Obviously, the situations of drugs not allowed in the West being used in developing countries are highly immoral. Pharmaceutical companies have aggressively pushed for policies that allow for these kind of (dumping) practices to take place. In order not to let products (forbidden in the West presumably to protect the health of consumers or the environment, but more likely to prevent future damage to corporations caused by bad publicity and/or costly lawsuits) ‘get wasted’, corporations make sure regulations allow them to ship those products (for example, pesticides, genetic engineered foodstuffs, medicines) to the South. In addition, leverage of corporations can often guarantee that the responsible public officers, regulators or politicians temporarily close their eyes to it.

After several lawsuits in Nigeria, it was only last September that the first suit was filed in the US. The lawsuit, filed on behalf of 30 Nigerian families, alleges Pfizer violated their human rights when it set up the clinic to give Trovan to the 200 children. The families say Pfizer did not obtain "informed consent" before administering the treatment. "This test was conducted in violation of international laws and treaties," the lawsuit says, "including the Nuremberg Code of 1947, which was enacted, in part, to prevent the horrors of medical experimentation performed during the holocaust from ever happening again."

The affair is embarrassing for the world’s largest pharmaceutical company, as the industry is attempting to recover from months of bad publicity over prices and access to its medicines. Aid groups say the Trovan lawsuit highlights actions even more sinister. In the developing world, some non-governmental organisations (NGOs) allege, companies are conducting sub-standard clinical trials on potentially dangerous drugs. Pfizer heralded Trovan as a medicine capable of killing bugs that had grown resistant to antibiotics. But its promise was overshadowed by safety issues, and it was never approved by US regulators for use on children (Financial Times 21/08/2001).

Corporate America is funding an ad campaign portraying entrepreneurs held hostage by frivolous lawsuits. But proposed remedies stink of special exemptions from justice. Eight weeks ago, the Republican senate leader slipped into patients' rights legislation a ban on all lawsuits against makers of parts for body implants, even those with deadly defects. The clause, killed by exposure, was lobbied by the Health Industries Manufacturers Association, supported by - you guessed it - Pfizer.