Corona drugs: Rich countries insist on patent protection

Status: 12/18/2022 11:34 am

Patent protection for corona vaccines had already been relaxed so that poorer countries could also vaccinate. Under pressure from rich countries, the World Trade Organization has now allowed a deadline to also release drugs.

A deadline set by the World Trade Organization (WTO) to facilitate the production of corona drugs in poorer countries has passed without result. The 164 member countries wanted to decide by yesterday whether patent protection easing, which they have allowed for corona vaccines, should also be extended to medicines and tests.

Such a decision failed due to the resistance of the richer countries in which companies in the pharmaceutical industry are based. The deadline has been extended indefinitely.

Resistance from the EU, Switzerland, Great Britain and the USA

The United States had argued that the government needed more time to examine whether such a decision would actually improve the supply of poorer countries with drugs against Covid-19. Aid organizations rejected this as an unfounded delaying tactic.

There was also resistance from the EU, Switzerland and Great Britain. Because the WTO countries have to decide unanimously, the plan failed before the December 17 deadline.

Hardly any production of generic vaccines

Certain patent protections for corona vaccines have been relaxed since June. More than 100 countries had been fighting for this for months. However, their proposal was watered down so much to break resistance that the result did little to boost generic vaccine production.

“As far as we know, not a single country has started production as a result of the decision,” says Piotr Kolczynski from the development organization Oxfam. Some production hurdles have been cleared, such as export restrictions for generics manufacturers. However, since no technology transfer was agreed, potential new manufacturers would not have the necessary knowledge for production.

Manufacturing drugs and tests is easier

But it is different with corona drugs and tests, says Kolczynski. The production is easier, even without further knowledge. According to the “People’s Vaccine” alliance, 84 percent of the world’s population lives in low- and middle-income countries, but only every 50th corona test is carried out there.

Only a fraction of the production of corona drugs such as Paxlovid or Molnupiravir has arrived in poor countries. The association of the pharmaceutical industry IFPMA says that there are companies that promote production in poorer countries themselves with voluntary licenses. They would also have offered to make part of their production available to poorer countries in the future, always at a low price.

Rich countries fear less incentive for innovation

Rich countries fear that relaxing patent protection would mean a breach of the dam and could arouse greed in the future, diplomats in Geneva say. Patent protection – and the associated profit prospects – are needed as an incentive for pharmaceutical companies to work on innovations.

“Each additional day of delay will ensure that a greater proportion of serious COVID-19 illnesses and deaths and economic losses occur in developing countries,” said Oxfam’s Max Lawson. “That should weigh on the consciences of rich-country politicians and the negotiators who prevented the deadline from being met.”

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