AMCs and G8

There is a major effort going on to get G8 funding for Advanced Market Commitment (AMC) for vaccine to combat disease in the developing world. The scheme basically pays Pharmaceutical companies to develop vaccines to stop malaria, HIV-AIDS, and tuberculosis. The current discussion is for a Grant of around $6 billion. Andrew Farlow, the head of Economics at Oriel College, Oxford, is writing a Paper stating this methodology will only generate low quality vaccines which will not actually cure the diseases in question (think of the use of Antibiotics and the evolution of Drug-resistant strains of the disease). He will also claim that the lack of infrastructure in these developing nations will forestall proper utilization of whatever vaccines are developed. Farlow asserts that the G8 should fund traditional methods for combating these diseases, and the creation of infrastructure to provide such treatments. Thanks to the Private Sector Development Blog for the link.

ScientificAmerican.com published this article examining the Issue of the lack of demand in developing nations for the products of Pharmaceutical companies to combat the known extreme diseases. The trend of the articles sympathizes with the big Drug companies, rather than with the poor developing nations; who may be so rude as to consider these Drugs overpriced and relatively worthless to handle major crises within their own nations. Developing nations’ major complaint at the big Drug companies consist on the ineffectiveness of the drugs involved, the lack of provision of qualified Administrative personnel to adequately supervise drug applications, and the ridiculous Prices demanded for the drugs. I personally tend to side with the Developing nations.

The entire issue of AMCs remind myself of the Proscription D debacle. The great advance in American health protection granted vast Tax relief to Big Pharma immediately, and short-term immediate relief to Social Security recipients. Insurers also made great Bonuses in signing up the Elderly in such Plans. One has only to examine the increases in Insurance rates and Drug prices to estimate Recipients of the great Plan may be paying as much for their Drugs as they were before the Plan, by some Period shortly after Bush’s Leave-taking of Office. Who knows? Maybe Big Pharma needs a few more billions in Profits.

AMCs could be easily substituted by a Plan which stated G8 nations would guarantee $3 per dosage for any effective Drug or Vaccine with an Administrative fee Payment of $200 per 200 administrations of a Drug or Vaccine if and only if Pharmaceutical companies provided On-Site qualified Medical Staff to administer such Drugs or Vaccine. But wait: Where is the big-time money in that? lgl