US embassy cable - 03AMMAN4194

UNCLAS SECTION 01 OF 02 AMMAN 004194 
 
SIPDIS 
 
SENSITIVE 
 
USDOC 4520/ITA/MAC/ONE/PTHANOS 
USDOC FOR IRAQ TASKFORCE 
USTR FOR SAUMS 
TREASURY FOR DEMOPULOS 
 
E.O. 12958: N/A 
TAGS: ETRD, BEXP, KIPR, JO, IZ 
SUBJECT: PHRMA GROUP FORMS TO SUPPORT IRAQ 
 
 
SENSITIVE BUT UNCLASSIFIED 
 
1.  (SBU) Summary.  A group of Amman-based reps of 
multinational pharmaceutical companies, facilitated by 
the regional office of Pharmaceutical Research and 
Manufacturers of America (PhRMA), is forming a working 
group to provide recommendations to Iraqi authorities on 
establishing a pharmaceutical regime.  These major, 
innovative companies, which have mainly been shut out of 
the Iraqi market for over a decade, have substantial 
experience and resources that could be brought to bear on 
some of the difficult issues Iraq's health sector faces. 
The embassy will remain engaged with the group as their 
work progresses.  End Summary. 
 
2.  (SBU)  Following a July 6 conference call with CPA 
advisor to the Iraq Ministry of Health Shaun Stevens, a 
group of Amman-based representatives of multinational 
pharmaceutical companies agreed to form a working group. 
The group, which will try to include CPA reps 
electronically, will endeavor to provide recommendations 
to Iraqi authorities as they devise new procedures for 
the import and distribution of pharmaceutical products. 
 
3.  (SBU)  The company reps explained that as U.S. and UK 
companies most of them had been excluded from Oil for 
Food program contracts with Iraq for the past decade. 
The Iraqis mainly procured generic products from Russia, 
China and other countries that were perceived as 
politically supportive of the regime and from companies 
ready to pay "commissions."  Thus, their companies and 
products, which are the most modern and innovative, are 
for the most part not included on lists of drugs Kimadia 
(the Health Ministry's procurement arm) had purchased 
over the past decade.  They had also lost contact with 
Kimadia officials.  Their companies' main interest is in 
working with Kimadia to restore what they believe is 
their natural share of the Iraqi drug market, as they say 
they enjoyed pre-sanctions. 
 
4.  (SBU)  They understand that this is a medium term 
objective and that a necessary part of restoring their 
access is establishment of an Iraqi legal and regulatory 
regime for pharmaceutical products that covers issues 
like intellectual property protection, drug registration, 
pricing, and distribution.  They also understood that the 
immediate task of CPA is to examine pending OFF contracts 
and to wind down the program.  In the meantime, the group 
will begin meeting and working to develop their ideas. 
One of the members noted, for example, that Jordan's IPR 
laws could provide a model for Iraqi laws.  They would 
welcome participation as possible by Kimadia reps, 
through visits to Amman or electronically. 
 
5.  (SBU)  In the shorter term, the group will also 
discuss with Kimadia and the WHO the status of the 
relatively few pending OFF contracts their companies 
hold.  They noted that they have also received requests 
from Iraqi private sector companies interested in 
distributing their products in Iraq.  Stevens, however, 
said Iraqi policy would probably be to work directly with 
the companies rather than through middlemen. 
 
6.  Comment:  This seems to be an excellent, constructive 
private sector initiative that will benefit both the 
companies and the creation of a health system in Iraq. 
One rep noted that among the group there was 250 years of 
collective experience in the pharmaceutical business in 
the region.  PhRMA should also be able to bring its 
financial and other resources to bear on some of the 
difficult issues the Iraqi health sector faces.  Amman 
appears to be the natural locus for this activity since 
many PhRMA members base their regional operations in 
Amman or in nearby Beirut or Damascus.  The embassy will 
work with the group as its activities develop.  As 
suggested during the conference call, it could be very 
useful at the right time for Kimadia reps to travel to 
Amman to meet the group.  End Comment. 
 
7.  (SBU)  The call was facilitated by the regional PhRMA 
rep Samir Mansour, Embassy Amman's Economic Section, and 
Humanitarian Assistance Coordinating Center (HACC) Amman 
reps.  Regional representatives of Bristol Myers Squib, 
Schering Plough, Pfizer, Novartis, Eli Lilly, Wyeth, 
Glaxo Smith Kline, Schering AG, and Boehringer Ingelheim 
participated in the call and subsequent meeting.  Mansour 
will coordinate future activities of the group on behalf 
of PhRMA. 
GNEHM