Pharmaceutical Companies

Questions for Review 1. Pharmaceutical companies do have a responsibility to distribute drugs at a low cost in developing and poorer countries. Africa’s GDP, and per capita income is very low so they cannot afford to buy top-quality medicines. One main argument for this approach is the AIDS epidemic in Africa. The main argument against this is that the treatment for AIDS is very expensive to provide to a whole country for free.

2. The principal arguments of pharmaceutical companies that oppose making exceptions to IPR law for developing countries are a national treatment that is equal to foreign and domestic nationals. Most-favored-nation treatment and the equal treatment of all WTO members. Also, technological progress. One last argument is how to provide adequate protection for this, and enforcing it. The arguments by NGOs and others to relax IPR laws are to end trade pressure on poor countries in health care industry disputes.

3. I would expect South Africa’s decision to levy duties on drug imports from western nations to have a negative impact on the international distribution of drugs to South Africa. If it is already expensive and hard to get drugs for AIDS patients in Africa, making them more expensive will not help. In my opinion, I feel like this was an appropriate change of policy because it did lower prices on drugs. Some negative ramifications of this resolution are that the price wouldn’t drop low enough.

5. I do not think it was necessary to relax IPR rules in order to ensure that adequate supplies of AIDS medications would be available for distribution in the developing world because the US took the initiative to fix high drug prices and low-quality health infrastructures. 6. MNC’s have an ethical responsibility in providing funding to international organizations like the global fund to help cure AIDS