[Ip-health] Abbott cuts price of Kaletra

[Benjamin Krohmal]

First Stocrin, now Kaletra... more positive ripples for other
countries from the Thailand CLs.  Unfortunately, this doesn't mean
that Abbott is changing its deplorable position on releasing new
drugs in Thailand.

http://pharmalot.com/2007/04/abbott_lowers_price_of_kaletra.php

April 10, 2007
Abbott Lowers Price Of Kaletra AIDS Drug

The drugmaker has agreed to lower the cost to $1,000 per patient per
year in more than 40 low- and middle-income countries, as defined by
World Bank criteria. This includes India, Brazil and China. And
Abbott will "immediately begin discussions with countries where (its)
patents are respected" to increase the number of patients who can
obtain Kaletra at the new price.

And what about Thailand? Abbott says it "fully respects and
appreciates the suggestion of World Health Organization director-
general Margaret Chan that more work needs to be done with the
government of Thailand to achieve a positive outcome." Meanwhile,
Kaletra capsules remains available in Thailand at the new price, as
opposed to the older $2,200 price.

This is the first sign that Abbott is doing something other than
playing hardball with the Thai military government, which recently
issued compulsory licenses for Kaletra and two other drugs sold by
Merck and Sanofi-Aventis. Unlike the others, Abbott has refused to
negotiate and, instead, threatened not to sell new meds in the country.

Unfortunately, this statement is worded so vaguely that it's hard to
tell what, if anything, Abbott is doing besides lowering its price.
Has Miles White and his team agreed to wide-open talks? Is the
drugmaker backing away from its threat not to sell new drugs there?
Or is the wording a polite way to tell Chan that she's not doing enough?

An Abbott spokeswoman says the drugmaker has "been willing to talk"
to the Thai government, and denies reports that Abbott isn't
attending a session this week involving Thai officials, Merck and
Sanofi-Aventis. However, the company isn't interested in discussing
royalties on generic versions of Kaletra. And for now, Abbott isn't
changing its mind about selling new meds there.

The drop in price is clearly designed to defuse tensions, and not
just in Thailand. Whether the move will soften the Thai military is
another matter. The government seems determined to stick to its plan
to issue compulsory licenses, and that could mean more showdowns.

The complete Abbott statement is here.
http://www.abbott.com/global/url/pressRelease/en_US/60.5:5/
Press_Release_0442.htm

The Bangkok Post yesterday on Abbott shunning talks.
http://www.bangkokpost.com/topstories/topstories.php?id=117965

Posted by Ed Silverman