Turing Pharmaceuticals' dramatic hike in the price of an essential medicine, Daraprim, raises serious issues about the design of the Trans-Pacific Partnership (TPP), a QUT intellectual property expert has warned.
This week Turning's CEO Martin Shkreli made headlines when he raised the price of the 62-year-old drug from $US13.50 to $US750 a pill.
QUT Professor of Intellectual Property and Innovation Law Matthew Rimmer said the move had drawn criticism from around the world because Daraprim was listed on the World Health Organization's Essential Medicines List.
"This drug is particularly useful in the treatment and prevention of malaria, and the treatment of infections in peoples with HIV/AIDS," said Professor Rimmer, from QUT's Faculty of Law.
"In the face of much criticism, Martin Shkreli has said that he will reduce the price of Daraprim but he's been vague about the nature of that commitment."
Professor Rimmer said the controversy over Daraprim has concerning implication for countries negotiating the TPP, including Australia.
"The dispute highlights the dangers of extending the rights of pharmaceutical drug companies under intellectual property, investor-state dispute settlement and drug administration," he said.
"We need to ensure there are proper safeguards to provide access to essential medicines - particularly in respect of HIV/AIDs, malaria, and tuberculosis.
"Moreover, we must protect vulnerable groups against drug profiteering and price gouging."
Professor Rimmer said, while the age of Daraprim made this an unusual controversy, it was not an isolated problem.
"It's more common than you might think - it's not even the first time Mr Shkreli has jacked up the price of a drug," Professor Rimmer said.
"Drug pricing is a real concern globally, particularly for essential medicines for HIV/AIDS, tuberculosis and malaria.
"The dispute raises larger issues about health-care, consumer rights, competition policy and trade.
"I'm pleased to see this latest controversy has provided impetus for law reform in the United States."
Professor Rimmer said US presidential candidate Hillary Clinton's comment on Twitter, 'Price gouging like this in this specialty drug market is outrageous', triggered a sharp fall in the Nasdaq Biotechnology Index.
She subsequently announced a prescription drug reform plan to protect consumers and promote innovation, while putting an end to profiteering.
Professor Rimmer said her rival candidate, Bernie Sanders, had also pushed for reforms to intellectual property to make medicines affordable.
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