TAC Statement on Democratic Alliance -- 15 February 2001

DEMOCRATIC ALLIANCE SUPPORTS COMPULSORY LICENCING AND PARALLEL IMPORATION
OF HIV/AIDS DRUGS - TAC SEEKS CLARIFICATIONS

As the tide of world opinion turns against profiteering by drug companies
and their underhand machinations are exposed, most political parties will
follow the opinions of decent citizens. At the TAC march to parliament on
12 February 2001, a memorandum was handed over to members of parliament
demanding generic production of anti-retroviral HIV medicines. Among one
of the demands, was that the opposition parties publicly declare support
for the Medicines and Related Substances Control Amendment Act 90 of 1997
(Medicines Act). The world's largest pharmaceutical companies are sueing
the South African government to stop this law.

Mr Tony Leon, leader of the official opposition party, the Democratic
Alliance (DA), has come half-way towards meeting this demand by stating,
"The terrible human cost of AIDS outweighs a legitimate attachment to
narrow definitions of intellectual property rights. Therefore, the DA's
historic opposition to legislation that would allow parallel imports and
compulsory licensing for HIV/AIDS drugs will cease from today, conditional
on government declaring AIDS to be a national emergency in terms of the
TRIPS accord and without compromising medicines control." (Parliament: 13
February 2001)

TAC welcomes the DA's policy change as a significant improvement on its
historical position. However, we seek clarification from the DA on the
following issues:

First, the Cape Times 14 February 2001 reports that the DA refuses to back
the government in the Court Case before the Pretoria High Court on the
Medicines Act. Is this true? Why? The principles and measures contained in
the Medicines Act will reduce the costs of medicines for all people in
South Africa and all medical conditions.

Second, Mr Leon has made his support of compulsory licensing and parallel
imports conditional on HIV/AIDS officially being declared a national
emergency. Indeed, HIV/AIDS is an emergency, but the TRIPS accord does not
require an emergency to be declared in order to override patents. Health
and nutrition are specifically exempt from the TRIPS provisions, and
clearly HIV/AIDS is a health issue. The Medicines Act is TRIPS compliant.

Third, the Medicines Act also makes provision for generic substitution of
off-patent medicines. Pharmacists will have to dispense cheaper generic
medicines unless a patient's doctor specifically requests that this not be
done. Generic substitution is practiced in many jurisdictions, especially
the USA. Furthermore, the law makes provision for greater transparency in
the pricing of all medicines, by setting up a committee with the power to
issue pricing regulations. These measures will significantly reduce the
prices of medicines throughout the health-care system, particularly in the
private sector. Mr Leon and the DA must unequivocally support these
provisions. The prestigious scientific journal Nature (17 February
2000:Vol 403 No. 6771) surveyed pharmaceutical company responses to the
worldwide TB epidemic, and commented: "If global health is left to market
forces, historians will remember this era as one in which humanity stood
idly by while half the planet languished in sickness."

Last, Mr. Leon appears to limit the DA stand to "HIV/AIDS drugs". This is
a vague and unworkable approach. Is azithromycin (an anti-biotic) an
HIV/AIDS drug? Is cotrimoxazole a HIV/AIDS drug? Should Pfizer be allowed
to charge R80.00 per capsule to an HIV negative woman with vaginal thrush
but only R2.00 per capsule to an HIV positive woman with HIV/AIDS? Or,
does the DA only refer to anti-retrovirals? TAC regards all drugs for
HIV/AIDS opportunistic illnesses, anti-retrovirals, neglected diseases
such as TB and malaria, as well as, all medicines for chronic illnesses
such as asthma, arthritis, hypertension and diabetes as essential
medicines. These medicines should not be used as profiteering commodities.

However, despite TAC's serious reservations, we welcome this step by the
DA. The DA's new position has removed yet another line of support for the
pharmaceutical companies. The DA is the traditional party of big business.
Even big business is clearly becoming annoyed with the pharmaceutical
industry. Business leaders are starting to realise that unless treatment
is made available to people with HIV/AIDS, their future profits and
prospects for growth are at severe risk. But, we hope that they also
support the constitutional rights to health care access, life and dignity.

On Sunday night, President Mbeki stated that some issues are more
important than party political allegiances. We agree. HIV/AIDS is a
national emergency (official or not). It is critical that all parties,
particularly the ANC and the DA, do not use it for political
point-scoring. We ask all political parties to work with TAC to develop a
treatment plan for HIV/AIDS before 16 June 2001.