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Solon seeks probe of drug firms’ ‘war’

By Lira Dalangin-Fernandez
INQUIRER.net
First Posted 13:26:00 10/30/2009

Filed Under: Conflicts (general), Medicines, Health, Congress, Laws

MANILA, Philippines – An inquiry at the House of Representatives is being sought into the conflict between a local and transnational drug firm over the production of a maintenance drug for cardiovascular diseases.

Bayan Muna partylist Representative Satur Ocampo said the controversy between United Laboratories, Inc. (Unilab) and Pfizer Inc. would fall under the jurisdiction of the Cheaper Medicines Act that was passed to bring down the prices of medicines and make these more accessible to the public. The law, which Ocampo co-authored, also aims to put an end to patent abuse in the industry.

In July 9, Unilab filed a petition with the Intellectual Property Office (IPO) for the cancellation of Philippine Patent No. 29149 for Atorvastatin being marketed by Pfizer under the brand name Lipitor. Pfizer’s patent prevents the creation and marketing of any similar drug and essentially gives the company a monopoly over the maintenance drug.

“There is basis to say that Pfizer’s application for a patent in the Philippines is exploitative as it tends to abuse the patent system. Pfizer may be unjustly extending its monopoly on the drug by introducing minor modifications just to extend the life of its patent, a practice known as 'evergreening,'" Ocampo said in a statement.

By seeking to monopolize the production and sale of a maintenance drug that is crucial to the survival of many Filipinos with heart diseases, Pfizer was "doing a great disservice to the people," the congressman said.

"It wants its own product Lipitor to be the only product on the market, but Lipitor’s exorbitant price is enough to cause heart attacks,” he added.

Lipitor costs P34.45, P39.13, and P50.50 per 10, 20 and 40 milligram tablets, respectively. Since Lipitor is to be taken at least once daily, the average cost to a patient is at least P34.45-P50.50 a day.

Unilab is marketing Avamax, its generic version of Atorvastatin at a price 30% cheaper than Lipitor: 10 mg for P25.00; 20 mg. for P30.00; and 40 mg. for P35.00.

“This is a case involving a local drug company and a transnational firm: a David vs. Goliath case. It’s a test of the government's determination to reduce drug prices. It also has serious implications on the country’s economic sovereignty and how our own industries hold out against foreign competition, and how all this impacts on the public,” Ocampo said.

According to industry reports, Lipitor was the largest-selling drug in the world in 2006, earning its producers US$12.9 billion in sales the same year alone.

In the Philippines, Pfizer earned more than P850 Million in sales within the period of May 1, 2008 – April 30, 2009.

In 2008, Lipitor sales internationally were at US$13 billion, with about US$15 million coming from the Philippines. Since the time it was launched in the country, Lipitor sales have been at US$162 million.

“Congress should also investigate reports that Pfizer and Warner-Lambert have threatened many local drugstores not to carry such medicine other than theirs. This is predatory business practice that without doubt could mean the life and death of many Filipinos suffering heart ailments. If there is truth to these reports, sanctions should be laid down against Pfizer Inc.,” Ocampo said.



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