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Strong Medicine: Creating Incentives for Pharmaceutical Research on Neglected Diseases

HIV/AIDS, tuberculosis, and malaria are the three major killers that account for 40 percent of mortality due to infectious diseases in the world. According to The World Health Report, 2004 (WHO), approximately 2.8, 1.6, and 1.3 million people died in 2002 respectively from AIDS, tuberculosis, and malaria. Further, a larger number of newly infected people have been added every year to the total of those living with these diseases, 5 million for HIV, from 8 to 9 million for tuberculosis, and 300 to 500 million for the malaria. What is important within the context of international development is that the majority of people infected by these diseases are concentrated in low-income countries. The burden of infectious diseases is a serious issue for many people in these countries and is considered a strong impediment to economic growth. The purpose of the book is to provide practical ways of stimulating research and development (R&D) for neglected diseases, in particular the three major killers mentioned above. Although patients living in low-income countries sorely need medicines, they usually cannot afford them. R&D activity for these medicines does not seem to be taken seriously by pharmaceutical companies. Within these circumstances, the authors examine reasons for the lack of R&D as well as various systems designed to deal with the problems associated with R&D incentives and access to medicines. From their analysis, they conclude that a commitment to purchasing vaccines could develop. Regarding this issue, Lanjouw (2002) has taken the position that since the existing patent system plays such an important role in innovations, it should be reformed in order to correspond to the actual circumstances of low-income countries. Thus, there is a difference between the two relative to whether the proposal applying to this problem is a substitute for or a complement to the existing patent system. In the past five years, discussion of this issue has become quite meaningful. Reflecting the upsurge of international public opinion, and with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS), WTO members agreed to institute a more flexible policy regarding medicines for the three major killers from 2001 to 2003. Developing countries now have the right to produce drugs protected by the patent holder and to grant compulsory licenses to home manufacturers through this agreement. They can also import cheaper drugs from the countries that produce copies using compulsory licenses. While no country has used these rights so far, these amendments heighten the bargaining