'Drug prices ten times the cost Americans pay'

For every Bt100 Thai patients spend on medicinal drugs, Bt55 was for medicine while Bt45 was for loyalty fees and overpricing, Dr Wandee Phokhakul, a senior Public Health Ministry expert said.

Given the US' gross domestic product index, ten times that of Thailand, it could be said Thai people in general paid 10 times more for medicines than the rates American people paid each year, the doctor explained.

In the US, pharmaceutical firms made profits of 1218 per cent, higher than commercial banks or drink bottlers, because their investments were lower than other businesses - as low as 5 per cent.

Citing a 2001 report, she said US pharmaceutical firms made an annual profit of US$47.4 billion (Bt1.6 trillion) while they invested US$19 billion in research funds and advertising. In the same year, the world's 10 largest drug firms made profits totalling US$116.6 billion.

Chernphorn Tengamnuay, of the Thai Pharmaceutical Manufacturers Association, said the prices of imported medicines could be eight times cheaper with compulsory licensing. He said local pharmaceutical companies made an average of 3 per cent profit while foreign firms made billions of baht each year. About 60 per cent of medicines were imported, with the remaining 40 per cent made locally by Thai pharmaceutical firms.

Dr Wichai Chokewiwat, chair of the National Health Commission Office, said among factors inflating prices for both locally made and imported medicines here, was the prescribing of expensive imported medicines by doctors with vested interests in certain firms. Another factor was overspending for exaggerated advertising.The doctor said prices of locallymade medicines could be brought down by placing prescriptions for medicines under an umbrella regulatory system. Similar systems now supervised separately by the Social Security Office and the Government Pension Fund, should be governed under the National Health Security Office.

Nimit Thianudom, director of the Aids Access Foundation, said his group would gather today outside Parliament House to discuss his group's request that parliamentary approval be needed to legitimise any government agreements with foreign countries over medicines.