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The problem
Many of the poorest people around the world are unable to purchase expensive, genuine branded drugs and unwittingly buy cheaper fake drugs that have infiltrated markets worldwide. This reality costs lives. Why is this happening?
The cost of medicines is too high
Many poor people around the world cannot afford to pay for high-priced, branded drugs that could save their lives. A huge demand for cheaper drugs therefore exists. Intellectual property issues, explained below, block cheaper generic (unbranded) drugs from entering the market, so cheap fake drugs, disguised as real drugs, have filled this gap in the market. Unaware the drugs are fake, many poor people in desperate need of help will purchase them.
In an environment where real drugs are too expensive for many and access to generic drugs is blocked, the cheaper fake drug market flourishes and the health of many of the poorest people in the world is put in jeopardy.
Trade agreements block access to cheaper real drugs
The Trade-Related Intellectual Property Rights (TRIPS) Agreement and some Free Trade Agreements (FTAs) have also blocked poor countries from accessing cheaper generic (non-branded) drugs. These deals include longer-lasting patents for branded drugs, which pharmaceutical companies can then charge high prices for.
If poor countries had access to affordable, quality generic drugs, the fake drug trade would become less profitable and would shrink.
Current definitions of ‘counterfeit’ drugs could block access to cheaper real drugs
Unfortunately some attempted solutions to the fake drugs problem can actually make things worse. The international community is discussing the definition of ‘counterfeit’ medicines at the World Health Assembly in May, to help countries legislate against them. We believe ‘counterfeit’ drugs should mean fake drugs. But the current definition is too broad and there is a real danger that generic drugs, which are perfectly safe, effective and much cheaper than branded drugs, could be defined as counterfeit or fake under current definitions. Using broad definitions could block access to cheaper generic drugs which are vital to saving the lives of the poorest people around the world.
Blocking cheap generic drugs leaves a gap in the market for cheap fake drugs.
