[Ip-health] Sanofi chief urges price caps on new drugs

[robert weissman]

[snip]

Mr Le Fur said drug prices in poorer countries should be lower than
those in the west, but vowed to fight the decision this year by Thailand
to break the patent of Sanofi-Aventis=92 antiblood-clotting drug Plavix.

He said: =93If states no longer recognise patents, how do you want us to
do research?=94

[snip]

http://www.ft.com/cms/s/0/a44f5244-7aa9-11dc-9bee-0000779fd2ac.html?nclick_=
check=3D1

Sanofi chief urges price caps on new drugs
Financial Times

By Andrew Jack in London

Published: October 15 2007 04:02 | Last updated: October 15 2007 04:02

Pharmaceutical companies must in the future limit the rising prices of
new medicines to boost sales, according to the new chief executive of
Sanofi-Aventis.

In his first interview since taking over in January, G=E9rard Le Fur told
the Financial Times the trend of ever-higher prices for new drugs
=93cannot continue=94 and predicted that =93volume will dominate over price=
=94.

Mr Le Fur expressed optimism for Sanofi=92s future, with the larger,
younger, more international and more female senior executive team he has
appointed in recent months.

He also hinted at cost-cutting and an appetite for fresh acquisitions in
the months ahead.

Referring to the high price of biological, protein-based drugs such as
those for cancer, Mr Le Fur said that, with greater volumes, =93the price
of biotherapies will reduce towards that of more classic drugs=94.

He said a shift towards lower prices to boost volumes as pharmaceutical
companies increasingly focus on the world=92s fast-growing emerging
economies was one of the biggest changes in the drugs industry. =93For me,
the future is in the South,=94 he added.

He refused to comment on speculation that Sanofi-Aventis would buy BMS
of the US, but played down such a deal, saying: =93It has been talked
about for a year and nothing has happened. It was supposed to be imminent.=
=94

Mr Le Fur highlighted Japan as a potential market for acquisitions, but
stressed they would not be =93at any price=94 and would take time. He
indicated that biotech purchases would happen far more quickly, and said
in-licensing of products in development from other companies would
increase from 15-20 per cent of the pipeline currently to 25-30 per cent
in the coming years.

He said there was =93no fat=94 in the company but added: =93We will pay mor=
e
attention to our costs ... in a more difficult environment.=94

Mr Le Fur said drug prices in poorer countries should be lower than
those in the west, but vowed to fight the decision this year by Thailand
to break the patent of Sanofi-Aventis=92 antiblood-clotting drug Plavix.

He said: =93If states no longer recognise patents, how do you want us to
do research?=94

He called for a single, centralised system across Europe to negotiate
prices, in place of the cumbersome country-by-country approach that
exists now.

He denounced =93parallel imports=94, by which intermediaries exploit
differences in drug prices across the European Union, as =93a real
gangrene=94 that raised the risk of counterfeits and =93benefits patients i=
n
no way=94.

He argued that vaccines were a central part of the company=92s strategy,
offering governments a cost-effective way to prevent and treat disease.
He said Sanofi planned to double vaccine sales from the current 10 per
cent of total group revenues in the next few years.

Mr Le Fur also expressed his confidence in the continuation of his
company=92s long-standing joint venture with Merck of the US for the sale
of vaccines across Europe. =93We have no desire to change and nor do
they,=94 he said.

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