**NEWS RELEASE** 23 November 2004

KEY ROLE FOR PHARMACEUTICAL DONATIONS ALONGSIDE DIFFERENTIAL PRICING

Treasury Minister Supports Product Donations to Third World through New Charity

At the launch of International Health Partners, a charity set up to manage the safe donation and delivery of medical products in developing countries, Stephen Timms, Financial Secretary to the Treasury, said that pharmaceutical product donations have a key role to play alongside differential pricing structures that put basic medicines within the reach of people in poorer countries. He said: “A lot of poor countries face very severe health challenges. Health systems are weak – resources are inadequate for infrastructure, staff, equipment, and medicines.”

While welcoming the growing support for differential pricing on the part of the pharmaceutical industry itself, the minister acknowledged that, with a third of the world’s population having no access to the medicines they need, there was a role for programmes that would channel donations of essential pharmaceutical products and medical supplies.

“The UK policy on access to essential medicines emphasises the need for cooperation, not least in managing donations that are appropriate. And that is why the International Health Partners initiative is so welcome,” he said calling on pharmaceutical companies, the medical community, NGOs and governments to work together more effectively in the very complex area in which humanitarian aid and overseas development strategies can overlap.

Stephen Timms specifically called on the industry to support the establishment of IHP as a key intermediary between the five stakeholder groups (the pharmaceutical industry, the medical community, Government, NGOs and interested individuals). The Minister concluded by expressing his confidence in the IHP team noting that, “IHP is very well equipped to take on the complex and demanding challenges and succeed - given also the enthusiastic support and commitment being expressed.” He added that the Treasury shall be following progress with great interest.

IHP is built on the successful operations of a sister Canadian venture that has been channelling donated pharmaceutical products to the Third World for over 10 years. There are a number of similar initiatives that have operated in the US for 50 years. “From experience in North America and from discussions across the UK healthcare industry we believe that there could be as much as £100 million of in-date and usable pharmaceutical products made available for donation in the UK each year,” said Anthony Dunnett, President of IHP. In North America, the pharmaceutical industry “produces to donate” essential medicines and donates quality, in-date surpluses of essential primary medicines and supplies to IHP’s sister organisation, rather than shipping them to clinical waste disposal facilities.

The launch of IHP has been greeted with cross-party support with the leaders of all three main UK parties, including the Prime Minister, sending in messages of support. The charity’s launch was marked by the handing over of the first IHP medical travel pack, donated by the pharmaceutical and healthcare supplies wholesaler UniChem. The Travel Pack Programme will be the first IHP programme to be operational in early 2005. IHP’s other three programmes for targeted relief, disaster relief and special consignments will be introduced in mid 2005

IHP has the support of the UK pharmaceuticals industry (all of the five industry associations: Association of the British Pharmaceutical Industry; the Association of British Health-Care Industries; British Association of Pharmaceutical Wholesalers; British Generic Manufacturers Association; Proprietary Association of Great Britain,) and the British medical community (the British Medical Association, The Association of Surgeons of Great Britain and Ireland and a number of the Royal Colleges).

23 November 2004

Note to Editors:
The letters of support from the Prime Minister and other party leaders and key stakeholders can be found on the IHP website: www.ihpuk.org

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