[Ip-health] FT: Boerhinger Ingelheim to slash price of nevirapine

[James ARKINSTALL]

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http://www.ft.com/cms/s/8581296e-0281-11dc-ac32-000b5df10621.html=0D
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HIV drug price slashed=0D
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By Andrew Jack in London=0D
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Published: May 15 2007 03:00 | Last updated: May 15 2007 03:00=0D
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Boehringer Ingelheim, the privately-controlled German pharmaceutical=0D
company, is to slash the price of a pivotal HIV drug in the developing=0D
world and waive all barriers to generic manufacturers producing low-cost=0D
copies.=0D
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In an interview with the Financial Times, Alessandro Banchi, chairman of=0D
the company's managing board, unveiled measures to boost low-cost access to=
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its medicine nevirapine (Viramune). "We want to solve the problem (of=0D
access) once and for all," he said.=0D
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Boehringer Ingelheim will reduce the price of the drug by 50 per cent to 60=
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cents a day per patient in 78 low-income countries, and by up to 90 per=0D
cent to $1.20 in 67 middle-income countries. In wealthy nations it sells=0D
for $10-14 a day.=0D
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Separately, the company will waive 5 per cent royalty payments, reporting=
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requirements and other existing obligations for generic producers approved=
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by the World Health Organisation to make nevirapine using voluntary=0D
licences to override patents on the drug, in favour of a "non assert"=0D
policy.=0D
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The action will put fresh pressure on other drug companies to cut medicine=
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prices in poorer countries for essential medicines, at a time when Brazil=
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and Thailand recently announced compulsory licences to override rival=0D
companies' patents in spite of the manufacturers' objections.=0D
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The move follows a disappointing take up by low-cost generics producers of=
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Boehringer Ingelheim's previous offer to issue voluntary licences, as it=0D
attempts to stimulate others to produce its drug at the lowest possible=0D
cost.=0D
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In a blow to rivals' claims that deeper discounts are not possible without=
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removing necessary incentives to innovation, Mr Banchi added: "Preferential=
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pricing is the only way how we can meet both conflicting needs in the fight=
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against Aids. We can refinance our high research and development costs for=
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innovative, new treatments by the established price system in=0D
industrialised countries and can offer affordable medicines to patients in=
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poor countries who otherwise cannot afford antiretroviral medication."=0D
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Boehringer Ingelheim last year reported worldwide sales of =E2=82=AC276m ($=
373m)=0D
from nevirapine, a modest amount compared with its other drugs. Mr Banchi=
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said that if the decision to produce the drug was made on economic grounds=
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alone, he would have ceased manufacture.=0D
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Nearly a third of nevirapine is supplied to the developing world, where it=
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has also provided 1m treatments free of charge since 2000to prevent=0D
mother-to-child transmission of HIV.