[Ip-health] Article on ARV production costs in AIDS Journal

[Sheila.SHETTLE@geneva.msf.org]

Abstract below -- for the full article (subscription required), go to:=0D
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http://www.aidsonline.com/pt/re/aids/searchresults.htm;jsessionid=3DGyspvj2=
LGyZFNhbvc9k3Lq7sD9WQsT56DljGp1CLs0J9pGF8fxdm!-1693609116!-949856145!8091!-=
1?&index=3D1&results=3D1&searchid=3D2=0D
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Examining the production costs of antiretroviral drugs=0D
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Eloan Pinheiroa, Ashwin Vasanb, Jim Yong Kimb,c, Evan Leed,=0D
Jean Marc Guimierd and Joseph Perriensa=0D
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Objectives:=0D
To present direct manufacturing costs and price calculations of individual=
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antiretroviral drugs, enabling those responsible for their procurement to=
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have a better=0D
understanding of the cost structure of their production, and to indicate=0D
the prices at=0D
which these antiretroviral drugs could be offered in developing country=0D
markets.=0D
Methods: Direct manufacturing costs and factory prices for selected first=
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and secondline=0D
antiretroviral drugs were calculated based on cost structure data from a=0D
state-owned=0D
company in Brazil. Prices for the active pharmaceutical ingredients (API)=
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were taken=0D
from a recent survey by the World Health Organization (WHO). The calculated=
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prices=0D
for antiretroviral drugs are compared with quoted prices offered by=0D
privately-owned,=0D
for-profit manufacturers.=0D
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Results:=0D
The API represents the largest component of direct manufacturing costs=0D
(55=E2=80=9399%), while other inputs, such as salaries, equipment costs, an=
d scale=0D
of production,=0D
have a minimal impact. The calculated prices for most of the antiretroviral=
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drugs studied fall within the lower quartile of the range of quoted prices=
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in developing=0D
country markets. The exceptions are those drugs, primarily for second-line=
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therapy, for=0D
which the API is either under patent, in short supply, or in limited use in=
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developing=0D
countries (e.g. abacavir, lopinavir/ritonavir, nelfinavir, saquinavir).=0D
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Conclusion:=0D
The availability of data on the cost of antiretroviral drug production and=
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calculation of factory prices under a sustainable business model provide=0D
benchmarks=0D
that bulk purchasers of antiretroviral drugs could use to negotiate lower=
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prices. While=0D
truly significant price decreases for antiretroviral drugs will depend=0D
largely on the future=0D
evolution of API prices, the present study demonstrates that for several=0D
antiretroviral=0D
drugs price reduction is currently possible. Whether or not these=0D
reductions materialize=0D
will depend on the magnitude of indirect cost and profit added by each=0D
supplier over the=0D
direct production costs. The ability to achieve price reductions in line=0D
with production=0D
costs will have critical implications for sustainable treatment for=0D
HIV/AIDS in the=0D
developing world.=0D
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Sheila Shettle=0D
Communications Officer=0D
M=C3=A9decins Sans Fronti=C3=A8res=0D
Campaign for Access to Essential Medicines=0D
Rue de Lausanne 78=0D
1211 Geneva=0D
Switzerland=0D
+ 41.22.849.8403=0D
sheila.shettle@geneva.msf.org=0D
www.accessmed-msf.org=0D
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