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http://www.guardian.co.uk/elsewhere/journalist/story/0%2c7792%

2c1127107%2c00.html

War on cheap drugs

The big US pharmaceuticals firms are using Australia's public

medicine supply scheme for target practice, writes Fickling

Tuesday January 20, 2004

If you are reading this in the UK, Australia, Canada or Maine, you

may be the victim of a conspiracy you have scarcely guessed at.

Your government is preventing you from getting access to life-saving

drugs. Diabolically, it is insisting that you only receive the

medication you need if pharmaceutical companies give subsidies to

the rich.

Welcome to the world as seen through the eyes of big drugs firms.

Public pharmaceuticals programmes, by which governments drive down

prescription costs by bulk-buying common medicines, are a mainstay

of public health systems across the developed world. To the lunatic

fringe of the pharmaceuticals lobby, they are a menace: patients

under such programmes may be healthier and financially better off

but (the argument goes), intangibly, they are less free.

Top of the liberation hit-list at the moment is Australia, which is

embarking on the final round of free trade negotiations with the US

in Washington this week. The country's Pharmaceutical Benefits

Scheme (PBS) is likely to become a key target of US trade

negotiators over the next fortnight.

Drugs companies contributed £10m to Bush's election campaign

in 2000 and are determined to get their money's worth out of any

free trade agreement. The grumbles of the drugs and farming lobbies

have already delayed the signing of the deal, which President Bush

had previously scheduled for before Christmas.

US companies' principal lobbyist, the Pharmaceutical Research and

Manufacturers Association (Phrma), views the trade talks as a vital

opportunity to tackle what it regards as Australian protectionism.

Phrma's version of capitalism is bizarre. Public pharmaceuticals

programmes are to drugs as Wal-Mart is to kitchenware and camping

gear: they push down prices by buying in volumes that none of their

competitors can match. There are no laws in Australia banning non-

PBS medicines from the market, and no tariffs are imposed on drugs

that are not listed.

Nonetheless, Phrma argues that the very existence of a government

agency whose purpose is to depress the prices of drugs is anti-

competitive. Before a drug is listed on the PBS, its worth must

first be evaluated by committee, using criteria of provable

effectiveness, value and safety; all of which means that prescribing

doctors are unable to take other considerations into account - say,

whether the manufacturer has bought them a golf club membership.

Australia's conservative Coalition government is not widely trusted

on public health issues, but ministers have been keen to proclaim

their commitment to the PBS. Interviewed on ABC radio last week, the

prime minister, , stressed that certain issues would not

be up for negotiation: any deal, he explained, " means the protection

of the essentials of things like the Pharmaceutical Benefits Scheme " .

Mr 's use of language is famously circumspect, and it is

always worth thinking hard about his choice of words. Here it is

important to note that he is not talking about protecting the scheme

as a whole, only certain undefined " essentials " .

The likely line of attack during the trade talks will be Australia's

patent laws. At present, the lifeblood of the PBS is the constant

supply of low-cost generic drugs being brought on to the market; a

few tweaks of intellectual property rules could banish them from

existence.

The pharmaceuticals companies would see their profits rise - one

report last month estimated that such a change would add an extra

A$1bn (£470m) to the A$1.6bn cost of running the PBS - but Canberra

could still argue that it had defended the structure of the PBS and

hope that the public would not notice the rising costs of

prescriptions.

The US pharmaceuticals lobby can gain leverage from the fact that

Australia has much more to lose from this free trade deal falling

apart. Each country is expected to see its GDP rise by around

US$15bn (£8bn) as a result of the pact, but in Australia's small

economy that difference will be felt much more keenly.

Australian prime ministers have been pushing for an agreement since

the early 1990s, and was in Washington lobbying for free

trade talks on September 11 2001. " It would be a very foolish

government that passed up this once-in-a-generation opportunity, " he

told the ABC, in far more emphatic terms than he used to defend the

PBS.

US politicians have been more direct in their comments. A letter to

the US trade representative Zoellick written by the Democrat

congresswoman DeLauro and signed by 17 other members of

Congress put matters more bluntly.

" We are deeply opposed to the trade office being used by the US

pharmaceutical industry to achieve its strategic objective of

raising worldwide drug prices to the level now paid by US

consumers, " the letter read.

The claim of global intent is no idle fear. The US drugs lobby

increasingly regards public pharmaceuticals programmes, such as the

PBS, the NHS's purchasing and supply agency, and Canada's provincial

drug review committees, as a threat that must be conquered.

The awkward pact struck between the US House of Representatives and

Senate late last year over President Bush's Medicare bill included

provisions to scrutinise such " protectionist " programmes in foreign

countries, and if necessary to eliminate them through free trade

negotiations.

It shows how far the debate has drifted when you think that

Washington once spent its time trying to lower the costs of the one

in four prescriptions that are not filled because US citizens cannot

afford to buy the medicines they need. Now, the problem is seen to

be not high prices at home, but low prices overseas.

As the US free-marketeer Glassman wrote last week, " US policy-

makers should focus attention not on the fact that Americans pay

more for drugs, but on the fact that Canadians pay less because they

are freeloading on Americans. "

All the same, American politics is a broad church. Beyond the

beltway, the momentum is increasingly towards public pharmaceuticals

programmes of the sort that US free market advocates berate as

protectionist in other countries.

One such programme kicked off in the state of Maine last weekend,

after years of appeal and supreme court battles against the Phrma.

Another is scheduled to start in Hawaii later this year, and even

the governor of Florida, Jeb Bush - the brother of the president

himself - has stated his support for cheap prescriptions for the

sick over hefty profits for corporate boards.

We must hope that the same staunch concern for the public interest

is characterising the actions of Canberra's trade negotiators this

week. It would be a shame if Australia were to take lessons in

standing up to Washington from America's own state governments.

Email

david.fickling@...

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rickjgio <rickjgio@...> wrote:From: " rickjgio "

" Psychbusters "

Subject: War on cheap drugs

Date: Wed, 21 Jan 2004 23:34:37 -0800

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{background:#ffffff;}New Message on Psychbusters

War on cheap drugs

Reply

Reply to Sender Recommend Message 1 in Discussion From: rickjgio

War on cheap drugs

The big US pharmaceuticals firms are using Australia's public medicine supply

scheme for target practice, writes Fickling

Tuesday January 20, 2004

If you are reading this in the UK, Australia, Canada or Maine, you may be the

victim of a conspiracy you have scarcely guessed at.

Your government is preventing you from getting access to life-saving drugs.

Diabolically, it is insisting that you only receive the medication you need if

pharmaceutical companies give subsidies to the rich.

Welcome to the world as seen through the eyes of big drugs firms. Public

pharmaceuticals programmes, by which governments drive down prescription costs

by bulk-buying common medicines, are a mainstay of public health systems across

the developed world. To the lunatic fringe of the pharmaceuticals lobby, they

are a menace: patients under such programmes may be healthier and financially

better off but (the argument goes), intangibly, they are less free.

Top of the liberation hit-list at the moment is Australia, which is embarking on

the final round of free trade negotiations with the US in Washington this week.

The country's Pharmaceutical Benefits Scheme (PBS) is likely to become a key

target of US trade negotiators over the next fortnight.

Drugs companies contributed £10m to Bush's election campaign in 2000 and

are determined to get their money's worth out of any free trade agreement. The

grumbles of the drugs and farming lobbies have already delayed the signing of

the deal, which President Bush had previously scheduled for before Christmas.

US companies' principal lobbyist, the Pharmaceutical Research and Manufacturers

Association (Phrma), views the trade talks as a vital opportunity to tackle what

it regards as Australian protectionism.

Phrma's version of capitalism is bizarre. Public pharmaceuticals programmes are

to drugs as Wal-Mart is to kitchenware and camping gear: they push down prices

by buying in volumes that none of their competitors can match. There are no laws

in Australia banning non-PBS medicines from the market, and no tariffs are

imposed on drugs that are not listed.

Nonetheless, Phrma argues that the very existence of a government agency whose

purpose is to depress the prices of drugs is anti-competitive. Before a drug is

listed on the PBS, its worth must first be evaluated by committee, using

criteria of provable effectiveness, value and safety; all of which means that

prescribing doctors are unable to take other considerations into account - say,

whether the manufacturer has bought them a golf club membership.

Australia's conservative Coalition government is not widely trusted on public

health issues, but ministers have been keen to proclaim their commitment to the

PBS. Interviewed on ABC radio last week, the prime minister, ,

stressed that certain issues would not be up for negotiation: any deal, he

explained, " means the protection of the essentials of things like the

Pharmaceutical Benefits Scheme " .

Mr 's use of language is famously circumspect, and it is always worth

thinking hard about his choice of words. Here it is important to note that he is

not talking about protecting the scheme as a whole, only certain undefined

" essentials " .

The likely line of attack during the trade talks will be Australia's patent

laws. At present, the lifeblood of the PBS is the constant supply of low-cost

generic drugs being brought on to the market; a few tweaks of intellectual

property rules could banish them from existence.

The pharmaceuticals companies would see their profits rise - one report last

month estimated that such a change would add an extra A$1bn (£470m) to the

A$1.6bn cost of running the PBS - but Canberra could still argue that it had

defended the structure of the PBS and hope that the public would not notice the

rising costs of prescriptions.

The US pharmaceuticals lobby can gain leverage from the fact that Australia has

much more to lose from this free trade deal falling apart. Each country is

expected to see its GDP rise by around US$15bn (£8bn) as a result of the pact,

but in Australia's small economy that difference will be felt much more keenly.

Australian prime ministers have been pushing for an agreement since the early

1990s, and was in Washington lobbying for free trade talks on

September 11 2001. " It would be a very foolish government that passed up this

once-in-a-generation opportunity, " he told the ABC, in far more emphatic terms

than he used to defend the PBS.

US politicians have been more direct in their comments. A letter to the US trade

representative Zoellick written by the Democrat congresswoman

DeLauro and signed by 17 other members of Congress put matters more bluntly.

" We are deeply opposed to the trade office being used by the US pharmaceutical

industry to achieve its strategic objective of raising worldwide drug prices to

the level now paid by US consumers, " the letter read.

The claim of global intent is no idle fear. The US drugs lobby increasingly

regards public pharmaceuticals programmes, such as the PBS, the NHS's purchasing

and supply agency, and Canada's provincial drug review committees, as a threat

that must be conquered.

The awkward pact struck between the US House of Representatives and Senate late

last year over President Bush's Medicare bill included provisions to scrutinise

such " protectionist " programmes in foreign countries, and if necessary to

eliminate them through free trade negotiations.

It shows how far the debate has drifted when you think that Washington once

spent its time trying to lower the costs of the one in four prescriptions that

are not filled because US citizens cannot afford to buy the medicines they need.

Now, the problem is seen to be not high prices at home, but low prices overseas.

As the US free-marketeer Glassman wrote last week, " US policy-makers

should focus attention not on the fact that Americans pay more for drugs, but on

the fact that Canadians pay less because they are freeloading on Americans. "

All the same, American politics is a broad church. Beyond the beltway, the

momentum is increasingly towards public pharmaceuticals programmes of the sort

that US free market advocates berate as protectionist in other countries.

One such programme kicked off in the state of Maine last weekend, after years of

appeal and supreme court battles against the Phrma. Another is scheduled to

start in Hawaii later this year, and even the governor of Florida, Jeb Bush -

the brother of the president himself - has stated his support for cheap

prescriptions for the sick over hefty profits for corporate boards.

We must hope that the same staunch concern for the public interest is

characterising the actions of Canberra's trade negotiators this week. It would

be a shame if Australia were to take lessons in standing up to Washington from

America's own state governments.

FAIR USE NOTICE: This may contain copyrighted material the use of which has not

always been specifically authorized by the copyright owner. Such material is

made available to advance understanding of ecological, political, human rights,

economic, democracy, scientific, moral, ethical, and social justice issues, etc.

It is believed that this constitutes a 'fair use' of any such copyrighted

material as provided for in section 107 of the US Copyright Law. In accordance

with Title 17 U.S.C. Section 107, this material is distributed without profit to

those who have expressed a prior general interest in receiving similar

information for research and educational purposes. For more information go to:

http://www.law.cornell.edu/uscode/17/107.shtml If you wish to use copyrighted

material for purposes of your own that go beyond 'fair use', you must obtain

permission from the copyright owner.

View other groups in this category.

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: 22:36-40

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rickjgio <rickjgio@...> wrote:From: " rickjgio "

" Psychbusters "

Subject: War on cheap drugs

Date: Wed, 21 Jan 2004 23:34:37 -0800

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*/calfgndcolor {color:#E00505;}calbgndcolor {color:#E00505;}BODY

{background:#ffffff;}New Message on Psychbusters

War on cheap drugs

Reply

Reply to Sender Recommend Message 1 in Discussion From: rickjgio

War on cheap drugs

The big US pharmaceuticals firms are using Australia's public medicine supply

scheme for target practice, writes Fickling

Tuesday January 20, 2004

If you are reading this in the UK, Australia, Canada or Maine, you may be the

victim of a conspiracy you have scarcely guessed at.

Your government is preventing you from getting access to life-saving drugs.

Diabolically, it is insisting that you only receive the medication you need if

pharmaceutical companies give subsidies to the rich.

Welcome to the world as seen through the eyes of big drugs firms. Public

pharmaceuticals programmes, by which governments drive down prescription costs

by bulk-buying common medicines, are a mainstay of public health systems across

the developed world. To the lunatic fringe of the pharmaceuticals lobby, they

are a menace: patients under such programmes may be healthier and financially

better off but (the argument goes), intangibly, they are less free.

Top of the liberation hit-list at the moment is Australia, which is embarking on

the final round of free trade negotiations with the US in Washington this week.

The country's Pharmaceutical Benefits Scheme (PBS) is likely to become a key

target of US trade negotiators over the next fortnight.

Drugs companies contributed £10m to Bush's election campaign in 2000 and

are determined to get their money's worth out of any free trade agreement. The

grumbles of the drugs and farming lobbies have already delayed the signing of

the deal, which President Bush had previously scheduled for before Christmas.

US companies' principal lobbyist, the Pharmaceutical Research and Manufacturers

Association (Phrma), views the trade talks as a vital opportunity to tackle what

it regards as Australian protectionism.

Phrma's version of capitalism is bizarre. Public pharmaceuticals programmes are

to drugs as Wal-Mart is to kitchenware and camping gear: they push down prices

by buying in volumes that none of their competitors can match. There are no laws

in Australia banning non-PBS medicines from the market, and no tariffs are

imposed on drugs that are not listed.

Nonetheless, Phrma argues that the very existence of a government agency whose

purpose is to depress the prices of drugs is anti-competitive. Before a drug is

listed on the PBS, its worth must first be evaluated by committee, using

criteria of provable effectiveness, value and safety; all of which means that

prescribing doctors are unable to take other considerations into account - say,

whether the manufacturer has bought them a golf club membership.

Australia's conservative Coalition government is not widely trusted on public

health issues, but ministers have been keen to proclaim their commitment to the

PBS. Interviewed on ABC radio last week, the prime minister, ,

stressed that certain issues would not be up for negotiation: any deal, he

explained, " means the protection of the essentials of things like the

Pharmaceutical Benefits Scheme " .

Mr 's use of language is famously circumspect, and it is always worth

thinking hard about his choice of words. Here it is important to note that he is

not talking about protecting the scheme as a whole, only certain undefined

" essentials " .

The likely line of attack during the trade talks will be Australia's patent

laws. At present, the lifeblood of the PBS is the constant supply of low-cost

generic drugs being brought on to the market; a few tweaks of intellectual

property rules could banish them from existence.

The pharmaceuticals companies would see their profits rise - one report last

month estimated that such a change would add an extra A$1bn (£470m) to the

A$1.6bn cost of running the PBS - but Canberra could still argue that it had

defended the structure of the PBS and hope that the public would not notice the

rising costs of prescriptions.

The US pharmaceuticals lobby can gain leverage from the fact that Australia has

much more to lose from this free trade deal falling apart. Each country is

expected to see its GDP rise by around US$15bn (£8bn) as a result of the pact,

but in Australia's small economy that difference will be felt much more keenly.

Australian prime ministers have been pushing for an agreement since the early

1990s, and was in Washington lobbying for free trade talks on

September 11 2001. " It would be a very foolish government that passed up this

once-in-a-generation opportunity, " he told the ABC, in far more emphatic terms

than he used to defend the PBS.

US politicians have been more direct in their comments. A letter to the US trade

representative Zoellick written by the Democrat congresswoman

DeLauro and signed by 17 other members of Congress put matters more bluntly.

" We are deeply opposed to the trade office being used by the US pharmaceutical

industry to achieve its strategic objective of raising worldwide drug prices to

the level now paid by US consumers, " the letter read.

The claim of global intent is no idle fear. The US drugs lobby increasingly

regards public pharmaceuticals programmes, such as the PBS, the NHS's purchasing

and supply agency, and Canada's provincial drug review committees, as a threat

that must be conquered.

The awkward pact struck between the US House of Representatives and Senate late

last year over President Bush's Medicare bill included provisions to scrutinise

such " protectionist " programmes in foreign countries, and if necessary to

eliminate them through free trade negotiations.

It shows how far the debate has drifted when you think that Washington once

spent its time trying to lower the costs of the one in four prescriptions that

are not filled because US citizens cannot afford to buy the medicines they need.

Now, the problem is seen to be not high prices at home, but low prices overseas.

As the US free-marketeer Glassman wrote last week, " US policy-makers

should focus attention not on the fact that Americans pay more for drugs, but on

the fact that Canadians pay less because they are freeloading on Americans. "

All the same, American politics is a broad church. Beyond the beltway, the

momentum is increasingly towards public pharmaceuticals programmes of the sort

that US free market advocates berate as protectionist in other countries.

One such programme kicked off in the state of Maine last weekend, after years of

appeal and supreme court battles against the Phrma. Another is scheduled to

start in Hawaii later this year, and even the governor of Florida, Jeb Bush -

the brother of the president himself - has stated his support for cheap

prescriptions for the sick over hefty profits for corporate boards.

We must hope that the same staunch concern for the public interest is

characterising the actions of Canberra's trade negotiators this week. It would

be a shame if Australia were to take lessons in standing up to Washington from

America's own state governments.

FAIR USE NOTICE: This may contain copyrighted material the use of which has not

always been specifically authorized by the copyright owner. Such material is

made available to advance understanding of ecological, political, human rights,

economic, democracy, scientific, moral, ethical, and social justice issues, etc.

It is believed that this constitutes a 'fair use' of any such copyrighted

material as provided for in section 107 of the US Copyright Law. In accordance

with Title 17 U.S.C. Section 107, this material is distributed without profit to

those who have expressed a prior general interest in receiving similar

information for research and educational purposes. For more information go to:

http://www.law.cornell.edu/uscode/17/107.shtml If you wish to use copyrighted

material for purposes of your own that go beyond 'fair use', you must obtain

permission from the copyright owner.

View other groups in this category.

Also on MSN:

Start Chatting | Listen to Music | House & Home | Try Online Dating | Daily

Horoscopes

To stop getting this e-mail, or change how often it arrives, go to your E-mail

Settings.

Need help? If you've forgotten your password, please go to Passport Member

Services.

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If you do not want to receive future e-mail from this MSN group, or if you

received this message by mistake, please click the " Remove " link below. On the

pre-addressed e-mail message that opens, simply click " Send " . Your e-mail

address will be deleted from this group's mailing list.

Remove my e-mail address from Psychbusters.

F. Prior jprior@... Chicago, IL 60656-1639

Calendar: http://calendar./j_prior

Cell: 773/230-5825 Fax: 781/459-8592

: 22:36-40

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