Newsletter
Ecuador Bypasses 2,000 Drug Patents to Provide Needed Medicines
Date: 11/02/2009By Dan Prescher
November 2, 2009 -- In a move to combat what some view as a monopoly by pharmaceutical companies, Ecuador declared last week that it would bypass more than 2,000 drug patents to begin local production of needed medicines at affordable prices.
A consortium of 14 drug companies including Bayer, Pfizer, and GSK have accepted the decision in a statement made through a Washington pharmaceutical association, saying “We accept the democratic decision... to legally implement this extraordinary measure. No legal right is superior to the requirements of public health.”
The move to bypass drug patents comes as a recent report showed that foreign firms control more than 80 percent of the Ecuadoran pharmaceutical market, causing Ecuador authorities to claim that a virtual monopoly on some brands of drugs led to skyrocketing drug prices.
In one instance, the cost of an antiviral drug made by a major pharmaceutical company dropped from $350 per dose to $60 per dose when manufactured locally.
"High costs, insufficient production and a lack of research have contributed to the fact that millions of people do not enjoy equitable access to medicines in developing countries such as Ecuador," said Andres Ycaza, president of Ecuador's Intellectual Property Institute.
Placing public health needs above the economic interests of private companies is becoming common government practice throughout much of Latin America, one factor that makes health care much cheaper than comparable care in the U.S.
This cost difference contributes to a rising number of U.S. citizens moving abroad part- or full-time to lower medical expenses without sacrificing quality of care.