[Ip-health] Vaccines for Africa 'face 700% mark-up'

[Ira Glazer]

http://news.independent.co.uk/health/article3172164.ece


By Jonathan Miller
Published: 18 November 2007

Drugs companies could receive mark-ups of 700 per cent under a plan,
spearheaded by Gordon Brown, to fund the development of a vaccine aimed
at saving millions of children's lives in developing countries. Of =A3750m
donated for the scheme 80 per cent will go in profits to the companies,
according to one expert.

Under an "advance market commitment" governments in the developed world
pay production costs, plus an agreed margin, to help provide incentives
for the pharmaceuticals industry to develop such drugs.

The plan is to produce a vaccine for pneumococcal disease, which causes
pneumonia, Africa's worst child-killer. US drugs giant Wyeth already
manufactures the vaccine for Europe and America, creating a =A31bn market
in which it is about to be joined by Britain's GlaxoSmithKline. Since
both companies have already developed vaccines to cover the strains most
prevalent in Africa, critics say their costs will be negligible. Even
though a hefty discount has been negotiated experts say millions more
children could be treated if the industry accepted a lower margin.