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Group worried costs will rise under TPP

NZ NewswireNZ Newswire 27/04/2016 Paul McBeth

The Trans-Pacific Partnership's longer data protection for biologic pharmaceutical makers will push up the cost of the fastest growing primary health treatment in the country, the Medical Association says.

Biologic drugs account for more than 40 per cent of new pharmaceutical products being developed and proposals in the TPP to extend the length of time manufacturers can retain the data in producing those products will delay the introduction of cheaper alternatives, Medical Association chairman Steve Childs told Parliament's foreign affairs, defence and trade select committee.

The trade and investment pact between New Zealand, the US, Japan, Canada, Mexico, Chile, Peru, Australia, Malaysia, Vietnam, Singapore, and Brunei proposes two options on biologics allowing for either eight years' data exclusivity, or at least five years protection plus additional measures to deliver extra market protection.

New Zealand currently has a five-year data protection period.

Childs said his organisation, which represents medical professionals, is unsure what those additional measures would mean, and that the Medical Association's fears a longer protection period will delay the process to develop generic alternatives to those biologics drugs.

"You're extending your cost monopoly for the producer of the products of the most expensive primary treatment that we offer. It is a concern," Childs said.

"It is the future - it is going to be the vast majority of healthcare we're going to provide."

The period covering biologics' data exclusivity was a major sticking point in the TPP's negotiations with the US pushing for a 12 year period, and a one-man US Trade Representatives' Office delegation coming to New Zealand is being seen as another attempt by the agreement's biggest partner to press its case as American policymakers increasingly oppose ratifying the deal.

The association requested officials undertake an independent analysis of the agreement to look specifically at how it will affect the health sector.

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