Fears over access to generic drugs

Kevin Hague.
Kevin Hague.
Forces started gathering in earnest yesterday following an admission some medicines will cost more if New Zealand signs up to the Trans-Pacific Partnership.

Trade ministers from the 12 countries negotiating the TPP are meeting in Hawaii this week for what has been called the end-game of negotiations.

Several sticking points remain for New Zealand, most notably dairy access to Canada and Japan.

However, the future of New Zealand's access to generic drugs now looked to become a major issue, despite assurances from Trade Minister Tim Groser.

Prime Minister John Key said yesterday despite the probability

some medicines would cost more, the deal was still in the country's best interests.

Mr Key rejected criticism the deal would be bad for New Zealand, saying by opening up other markets this country's exporters would benefit.

But he said there was a high probability patents on medicines would be extended under the deal.

''That means the Government will have to pay for the original drug rather than the generic for a little bit longer.

''But for consumers that won't make any difference because, you know, on subsidised drugs you pay $5 for your prescription so the Government may incur slightly more costs there.''

Doctors for the Protection of Health in Trade Agreements spokesman Erik Monasterio said one of the big issues being avoided was the price of the new medicines.

All new medicines from their original manufacturers were ''incredibly expensive'' and under the TPP they would stay expensive for longer.

For one particular new class of super-expensive drugs, known as biologics, the question was what effects the extra seven years the United States drug manufacturers wanted would have on New Zealand before less expensive generics were let into the country, Dr Monasterio, a specialist in psychiatry, said.

''For the seven most expensive biologics in New Zealand, every year of delay in getting virtually the same but less expensive versions would cost us at least $25 million to $50 million every year.

''To put this figure into perspective, that higher cost more than wipes out the estimated best-case scenario gains from the TPP for New Zealand of roughly $23 million.''

Labour leader Andrew Little said Mr Key's Government was betraying New Zealanders by trading away Pharmac's long-term buying power.

''John Key finally admitted medicines will cost more under the TPP his Government is negotiating, despite months of assurances by him and his trade minister.

''As recently as last month, Tim Groser said he wouldn't sign up to `undermine a central pillar of our public health system - Pharmac'. Today, John Key put the lie to that.''

Pharmac's purchasing power had saved New Zealanders more than $7 billion since 2000, he said.

Multinational pharmaceutical companies would be cheering the news and New Zealand taxpayers were the ones losing out.

It was disingenuous of Mr Key to say consumers would not be affected.

''Who does he think taxpayers are?''

Any extension of drug patents would inevitably lead to fewer medicines being available, including biologics, the latest cancer drugs, Mr Little said.

Mr Key rejected suggestions that if Pharmac was having to pay more it might delay bringing expensive drugs into the country.

''You've got to remember under the Pharmac model, they always make sure that there are a variety of drugs and often not just one.

''I mean if you take, you know, drugs for a condition that's quite common they often have about three on the list. They don't just have one,'' he said.

Green Party health spokesman Kevin Hague said the Government needed to explain how Pharmac was going to suddenly find millions of dollars to fund more expensive medicines without passing those costs on to everyday Kiwis at the pharmacy counter.

Medical professionals, who worked every day with the sickest and most vulnerable people, had been saying for a long time the TPP would put patients and the public system at risk, and raise the cost of medicine.

But the Government had stubbornly refused to engage with them.

''This is a make or break moment for our public health system.''

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