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Pharmaceutical Industry Fails in Developing Industry-Wide HIV/AIDS Initiative

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29 November, 2006

Today, on World AIDS Day, 1 December, ICEM General Secretary Fred Higgs announced the collapse of talks on a promising global HIV/AIDS initiative which had the potential to save countless lives of those living with HIV/AIDS in the world’s least developed countries, and improve their quality of life.

The announcement was made in Trinidad and Tobago on the final day of the Global Union Federation’s World Conference for the Chemicals Industries.

Much to his personal regret, Higgs declared that the proposed ICEM - Pharmaceutical Industry HIV/AIDS initiative, which he had hoped would develop into a highly visible and effective partnership, is now as good as dead. The initiative, which had developed following discussions with the pharmaceutical industry, would have opened the door for more affordable medicines for tens of thousands of poor people living with HIV/AIDS.

ICEM General Secretary Fred Higgs

Higgs stated, “This initiative would have given access to affordable drugs to individuals living with HIV/AIDS in all 50 of the United Nations-listed Least Developed Countries, including many in sub-Saharan Africa.”

The draft agreement, held in confidence by Higgs during the whole of the discussions, would have included the following statement:

“Leading companies in the research-based pharmaceutical industry pledge to provide high-quality HIV/AIDS medicines and related products for impoverished people in sub-Saharan and other least-developed countries at no-profit prices, through donation programs, and through alternative methods that include deeply discounted prices and licensing of propriety technology on mutually agreed concessionary terms.“

 

Lost Opportunity

The ICEM first engaged with the industry on this matter in 2003. Throughout the process, Pfizer was the only company that continued to recognise the need for a new substantive industry initiative, and supported further debate on the ICEM-led initiative.

According to Higgs, the ICEM had to overcome its initial hesitation at getting involved in a partnership since “we might have been seen as defending the industry against an un-defendable track record.”

“But, as a global trade union organisation, we represent both union members employed by pharmaceutical companies, and members in sectors with high HIV infection levels. Also, many of our affiliates are trying to deal with HIV/AIDS in the developing world. So, we believe we have a responsibility to seek to persuade the industry to do more to meet the challenge related to HIV/AIDS.”

Higgs added: “The ICEM recognises the fact that GlaxoSmithKline, Merck, Bristol Myers Squibb, Roche, Abbott Laboratories, Gilead Science, and Boehringer Ingelheim, through the Accelerating Access Initiative (AAI), an organisation formed to coordinate individual company initiatives in the area of HIV/AIDS, do valuable work to assist people affected by the Aids pandemic.”

“Although substantial, what they do via the AAI is not sufficient to either keep pace with the increasing numbers of those infected who have, due to cost, no access to the drugs they need. Nor does it help change the public perception of the industry from being part of the problem, to being part of the solution.”

Higgs reported at today’s conference in Port-of-Spain on the early discussions with representatives of three AAI member companies – Merck, Bristol Myers Squibb, and Abbott Laboratories – in a meeting hosted by Pfizer, which is not a member of the AAI.

“It was agreed at the time to discuss the ICEM proposal, as well as each company’s programme to provide access to affordable medicines and treatment on an individual basis with each AAI member company, to satisfy antitrust concerns.”

Individual company meetings were held between December 2003 and April 2004, which expanded to include GlaxoSmithKline, Roche, and Merck. A meeting with Boehringer Ingelheim was scheduled, but did not occur. Meetings also took place with representatives of the US industry trade association, the European industry trade association, and the International Pharmaceutical Manufacturers Association. The initiative’s draft text was substantially amended to reflect concerns raised during these meetings, including those related to anti-trust implications.

The Road to Nowhere

In September 2004, Higgs wrote to the CEO of each AAI member company asking for a response to the redrafted document, and requesting a meeting with each of them to discuss the proposed initiative and its possibilities.

Disturbingly, Higgs received almost the same response from each CEO, directing him back to the staff executives that he had spoken with earlier. No CEO directly addressed the proposal, or offered to meet.

The AAI did, however, start to take an active interest in other ongoing ICEM HIV/AIDS projects. As welcome as that was, Higgs made it clear that the two issues must be kept separate.

In July 2005, Higgs got back to the AAI, asking for a decision by 30 September 2005, on whether a meeting could be arranged with AAI CEOs to further discuss the ICEM proposal. The AAI failed to respond to the request in time. In April 2006, an AAI representative indicated that an AAI meeting would be arranged to chart a path forward with the ICEM.

Following four months of further delay, a brief e-mail was finally received indicating that the AAI would not be able to proceed on the draft ICEM initiative.

The Future

According to WHO and UNAIDS, the AAI companies are providing nearly 430,000 people in the developing world with Anti-Retroviral (ARV) medicines. Another 440,000 are reportedly receiving generic ARVs under the full international effort. In total, only around 15% of the estimated 6.5 million people in immediate need are getting treatment. 

This means that some 5.5 million people are still in immediate need of affordable medicines, with the price of those medicines continuing to be a major obstacle.

“The failure of pharmaceutical company leaderships to sit down with international labour and talk will remain a shameful episode,” stated Fred Higgs. “It is all the more sad when you realise that, at no time during the three-year-long discussions, did any representative of any one of the companies indicate that the initiative would be too expensive or unrealistic. No one ever said it wasn’t possible. They just didn’t want to do it.”

“In the future,” continued Higgs, “ICEM will focus on working on with international organisations and employers that understand labour’s capabilities to move HIV/AIDS treatment programmes forward in developing nations.” He noted that he has had positive discussions with officials of the United Nations, with the ILO, and with certain pharmaceutical companies, including the Chief Executive of Pfizer.

The International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM) represents 20 million workers from 384 industrial trade unions in 125 countries.