[Pharm-policy] Patent license provides SA will pay less for HIV vacinne

[James Love]

http://news.24.com/News24/Health/Aids_Focus/0,1113,2-14-659_921838,00.html

05/10/2000 06:34 - (SA)

SA to pay less for HIV drug than other
countries

Pierre Steyn

Washington - Should Alphavax HIV inoculation, which will be tested on
people in the United States and South Africa for the first time next
year, prove effective, it will be offered to South Africans for up to 60
times cheaper than to other Westerners.

Most new vaccines are normally prohibitively expensive for poor
countries, partly as a result of the patent rights of pharmaceutical
companies.

US biotechnological company, Alphavax, which developed the vaccine in
conjunction with researchers from the University of Cape Town and the
Medical Research Council, has, however, concluded a unique patent right
agreement with the International Aids Vaccine Initiative (IAVI).

The IAVI is a scientific organisation founded in 1996 to encourage the
development of safe, effective and accessible HIV vaccines which can be
used all over the world.

This organisation, which receives funding from, among others, the
Rockefeller, Bill Gates and Elton John foundations, as well as the World
Bank, donated $4.6 million (approximately R33.2 million) to Alphavax for
research purposes.

In exchange, Alphavax, which was founded by researchers from the
University of North Carolina, agreed to sell the vaccine to developing
countries for no more than the production cost plus 10%.

The chief executive officer of Alphavax, Peter Young, said in an
interview with Beeld on Wednesday that his company has committed itself
contractually to offer developing countries the best possible price for
the drug.

"Should the vaccine prove successful, Alphavax will enter into
agreements with local manufacturers to keep the production costs as low
as possible," he said.

"It is still far too early to determine what the price for the vaccine
will be. The first production run of the vaccine is only now occurring,"
said Young.

It will, however, be sold for much cheaper in South Africa than in the
US.

For example, while the vaccine may sell for between $100 and $300 in the
West, it may be sold for $5 per dose in South Africa.
 
  [snip]

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