[Ip-health] Pharmalot: Glaxo Cuts Prices On AIDS Drugs For Poor Nations

Wed Feb 20 17:39:32 2008

Go to pharmalot.com to access the hyperlinks.:
http://www.pharmalot.com/2008/02/glaxo-cuts-prices-on-aids-drugs-for-poor-n=
ations/

Glaxo Cuts Prices On AIDS Drugs For Poor Nations
February 20th, 2008 7:14 am By Ed Silverman

Glaxo announced what it calls =93significant new price reductions=94 for it=
s
HIV drugs that are offered on a not-for-profit basis to the world=92s
poorest countries. The reductions, the fifth such cut since 1997, apply
to all of its HIV meds but the most significant will be on Ziagen syrup
which is recommended by the World Health Organisation for use in
first-line and second-line regimens within resource-limited settings,
particularly for children. The new price per pack was lowered by almost
40 percent to $15.08 (Look here for the chart showing all the price
reductions).

The average reduction among the 14 meds is 21 percent and Glaxo sys the
cuts will take effect immediately for public sector customers and
not-for-profit organisations on the United Nations list of =91Least
Developed Countries=92 and Sub-Saharan Africa, a total of 64 countriesl.
The meds are also available to projects financed by the Global Fund to
Fight AIDS, Tuberculosis and Malaria and by President Bush=92s Emergency
Plan for AIDS Relief, otherwise known as PEPFAR.

In discussing the move, Glaxo says the price cuts reflect =93including
improvements and efficiencies in manufacturing and supply, and
reductions in the costs of active ingredients=94

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3 Comments

1.February 20th, 2008 at 10:48 am
Bob Freeman

Interesting piece=96I don=92t think the reduction in
manufacturing/distribution costs is the underlying reason for the
pricing decision. Rather, I see this as a way to maintain control of the
products per se and a way to avoid compulsory licensing by making it
less attractive for generic suppliers to enter the market. (I=92m not all
that convinced either that price concessions are sustainable in the
long-term.)

I am more impressed with Roche=92s corporate decision to forgo patent
registrations in these countries as well as their commitment to building
a manufacturing and distribution networks in those countries.

2. February 20th, 2008 at 11:02 am
truthman

How kind of Glaxo=85 Good PR Move... That=92s about all it amounts to=85

3.February 20th, 2008 at 11:08 am
Bob Freeman

Agree, Truthman. Certainly nothing new.

--
Sarah Rimmington
Attorney
Essential Action, Access to Medicines Project
Washington, DC
Tel: (202) 387-8030
Cell: (202) 422-2687
www.essentialaction.org/access/