[Ip-health] Bloomberg: Abbott Settles Norvir Suits: AIDS Help Set: Firm Won't Change Price

[Mike Palmedo]

http://www.chicagotribune.com/business/chi-0407170171jul17,1,7735249.story?coll=chi-business-hed

Abbott settles Norvir suits; AIDS help set
Firm won't change the drug's price

Bloomberg News
Published July 17, 2004

Abbott Laboratories, maker of the Norvir AIDS pill, agreed Friday to
fund AIDS programs for the testing, prevention and treatment of 10,000
people in the U.S. and Africa to settle two lawsuits over the pricing of
the medicine.

North Chicago-based Abbott will not alter the price of Norvir,
spokeswoman Jennifer Smoter said. Financial terms of the settlement were
not disclosed. Smoter said the accord is not expected to affect the
company's earnings.

The AIDS Healthcare Foundation, the largest AIDS organization in the
U.S., sued after Abbott quadrupled the price of Norvir in December to
$255 a month for a 100-milligram dose.

Abbott said it needed the money to fund more research. The foundation
accused the company of taking unfair advantage of people who needed the
drug to live.

"Both parties realized there were more pressing issues facing people
with HIV, and that's why we decided to work together," Smoter said.

The settlement does not resolve the underlying debate over pricing of
AIDS drugs, the foundation said in a statement.

"Where we're at now is in the best interest of the people we serve and
the people we will serve," said Tom Myers, general counsel for the
foundation. "We don't agree with the pricing, but we're not going to
take any more steps against it."

Last year, sales of Norvir were about $100 million.

Norvir is used as part of a combination of AIDS therapies. Adding a low
dose of Norvir to other protease inhibitors, which block the enzyme that
might stop HIV from multiplying and spreading in the body, creates one
of the most effective treatments for the disease, doctors say.

The settlement does not cover a similar lawsuit filed by the
Prescription Access Litigation, a coalition of consumer groups that sues
drug companies. Smoter said Abbott has filed court papers seeking the
dismissal of that lawsuit.

The Los Angeles-based foundation also has sued GlaxoSmithKline PLC,
arguing that the drugmaker misused the U.S. patent system to get a
monopoly on the AIDS treatment AZT. That lawsuit is pending.