Proposed Amendments to Bill C-9 on Drugs to Developing Countries

The Canadian federal government has removed a controversial provision of Bill C-9, the proposed legislation to amend the Patent Act allowing the export of cheaper versions of patented drugs to poor countries struggling to cope with AIDS, malaria, tuberculosis and other health crises. On April 20, 2004, a clause was removed that would have given brand-name pharmaceutical companies the "right of first refusal", allowing them the first chance to fill shipment contracts arranged by generic companies. For a note on the genesis of the legislation, see an earlier issue of E-TIPSâ„¢, (Vol 2 No 9 October 9, 2003). Ottawa also unveiled other changes, including the expansion of the list of eligible drugs and of the developing countries eligible for the program, as well as changes to the royalty rate. Additionally, a change was introduced in the definition of "eligible buyers" that would allow non-governmental organizations to buy the cheaper drugs on a country's behalf. The association representing Canada's research-based pharmaceutical companies, Rx&D, has expressed its overall support for the principles of the Bill but continues to have concerns relating to some of the proposed amendments. On the other hand, the Canadian Generic Pharmaceutical Association is concerned about a proposed amendment that would allow brand-name companies to take generic firms to court over a number of issues. The president of the Association expressed his concern that litigation provisions will discourage the generic companies from exporting drugs and could undermine the purpose of the legislation. For related news stories, see: http://makeashorterlink.com/?Z1C921128; or http://makeashorterlink.com/?Q3D941128. For a description of the proposed amendments, visit: http://makeashorterlink.com/?L21A23128. The text of the Rx&D press release, see: http://makeashorterlink.com/?M22A53128. The text of the CGPA press release, see: http://www.cdma-acfpp.org/en/news_releases/apr_20_04.shtml. For the Prime Minister's statement on amendments to Bill C-9, see: http://makeashorterlink.com/?G54A21128. Summary by: Clare McCurley