What drives pharma to be involved in MeTA?

Posted on 11 June 2009

Brian Elliott

Why would pharmaceutical companies want to get involved in the Medicines Transparency Alliance? As the Executive Director of MeTA, this is a question I am often asked. There are several reasons to be involved, particularly for ethical pharmaceutical research-based and generics companies in emerging markets. Would it not be very interesting for these companies if level playing fields with fair competition could be created in emerging markets? This issue will be one of the items we discuss at a consultative meeting between MeTA and the pharmaceutical industry in London on 23 June 2009. We will find out more from the pharma representatives present about their motives for being involved, but here are some reasons that I consider important.

The overall goal of MeTA is to increase access to essential medicines for poor people in developing countries. MeTA proposes that a fundamental and key condition for this goal to be achieved is the creation of a level playing field for ethical pharmaceutical companies, both research-based and generic, and locally and internationally based, in these markets.

On this level playing field several positive situations can be imagined. Fake and sub-standard drugs would be eliminated. Stockouts and theft in the public sector and leakages from the public sector into the private sector would be controlled. Inappropriately high levels of government taxation and markups and margins imposed by importers, distributors, wholesaler and retailers would be curtailed. Cumbersome registration and regulatory procedures would be made less onerous and time consuming. Medicines would be prescribed rationally and ethical codes of behaviour and standards in promotion of medicines would be observed and medicines would be within the reach of patients.

This scenario would provide the basis for fair and open competition among ethical pharmaceutical companies and other private sector groups involved in the supply of pharmaceuticals.

Increasing access to medicines also implies an increasing market size with higher volume sales and profits for manufacturers, distributors and retailers. Access to accurate market information, which the MeTA process will develop, will enable companies to design and implement cohesive marketing and sales strategies and plans, and to identify opportunities and openings in the market.

MeTA is not just another attack on pharma pricing.  MeTA asks for transparency and progressive disclosure of data and information in four areas:

·         Quality           Regulatory, sourcing, quality assurance, vigilance

·         Availability     Supply chain operations, equitable access

·         Price              Supplier, wholesaler, retailer, import taxes, duties, affordability

·         Promotion      Objective information, rational use, ethical advertising and promotion.

When I talk to company representatives in countries, it is quite clear why they are involved in MeTA. For example, Paul Lartey, CEO of LaGray Chemical Company Ghana said, “I got involved in MeTA because I was asked to represent the local pharmaceutical manufacturing group known as the Pharmaceutical Manufacturer’s Association of Ghana. My interest in MeTA - in fact the interest of the industry - is to actually make all of our information available. There is a certain perception that the local industry produces sub-standard drugs. I think it would be good that transparency comes up around this, to see how we are regulated, to see the quality of the drugs we make, and if the quality of the drugs we make is not up to standard I think we need to be held to book.” (Hear more from Paul Lartey here)

MeTA asks the pharmaceutical industry to support the MeTA approach of transparency and multi- stakeholder dialogue at international level. At pilot country level it asks the industry to engage with MeTA by beginning the process of progressive disclosure of data and information concerning price, quality, availability and promotion. It also asks industry to engage with the other stakeholders through the MeTA Councils in the discussions and debates arising from these disclosures aimed at eliminating barriers to access to essential medicines.

MeTA will hold a consultative meeting with the pharmaceutical industry in London on Tuesday 23 June 2009. The objectives of the meeting are to inform, consult with and receive feedback from the pharmaceutical industry on the concepts, principles and operations of MeTA with specific reference to MeTA’s aspirations to promote ethical business practices and fair competition in developing country pharmaceutical markets.

We warmly welcome the attendance of interested pharmaceutical companies at this important event. Please get in touch with me via the MeTA Secretariat office if you are interested.