[Pharm-policy] Idea for cheap raw materials for HIV/Drugs -- while saving money for US government

[James Love]

This is a proposal for (1) save US consumers and taxpayers hundreds of
millions of dollars per year, and (b) obtain a cheap supply of raw
materials for several HIV drugs to be used by the WHO or UNAIDS.  The
savings in the US and EU market could finance medicine purchases and
infrastructure for treatment in poor countries.    Jamie Love
<love@cptech.org>


The US goverment currently has Bayh-Dole rights in the following HIV
drugs:

   ddI
   ddC
   d4T
   Abacavir
   Ritonavir

Under US law, the US government could declare that these drugs have been
overpriced, given the public investment (not hard to prove), and issue
additional licenses for production, creating competition and saving US
(and possibly EU) taxpayers and consumers hundreds of millions of
dollars every year.  In addition, the US government could require, as a
condition of getting entry into the lucative US and EU markets, that the
company that obtained the additional license provide, at cost, the raw
materials for the products, to the WHO or UNAIDS, for use in poor
countries.  

This would solve several problems at once.  First, it would allow a firm
to exploit very large economies of scale.  Second, it would save US
taxpayers and consumers lots of money.   Third, it would find a way to
reward companies that produce cheap raw materials for poor countries. 
No only would this not cost the US government any money, it would save
the US government hundreds of millions of dollars every year.  The only
losers would be producers who are ripping off consumers for government
funded inventions, and two US Universities (Yale and University of
Minnesota) that share in BMS and Glaxo profits through royalties.

If it is possible to produce a three drug cocktail for $250 per year
with large scale production (as one Thai producer estimates), it would
cost $250 million per year to produce medicines for every one million
persons.  You could easily finance medicines for one million patients,
and have money left over for infrastructure investments, from the
savings in the US market for those 5 drugs.  

=======================================================
James Love, Director           | http://www.cptech.org
Consumer Project on Technology | mailto:love@cptech.org 
P.O. Box 19367                 | voice: 1.202.387.8030
Washington, DC 20036           | fax:   1.202.234.5176
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