[Pharm-policy] Price competition in Dominican Republic

[James Love]

Subject: Merck anounces price cut for Indinavir
   Date: Tue, 28 Aug 2001 13:04:09 -0400
   From: "Ho-chi Vega" <asoc.farma@codetel.net.do>
     To: "James Love" <love@cptech.org>

Dear James:
 
Today Merck formally anounced a cut in the price of its product Crixivan
(Indinavir) and  Stocrin ( efavirenz). This is a few weeks after the
launch of a Dominican Indinavir by Rowe. The price cut is significant
(about 85% of the price). The prices now are: US$ 60.00 for the
Indinavir and US$ 50.00 for the Stocrin. These are prices to the public
in pharmacies.The prices at the Distribuitor are US$ 50.00 for Indinavir
and US$ 44.66 for the Stocrin. The condition is that the products should
not be exported to other markets. This is a condition in paper because
there is no law that prohibits the export or selling of these or any
other product to whoever buys it. 
 
These are very good news to the Dominican Republic and we, as local
industries, feel that competition acomplished in a few weeks what
nothing else could in years of desolation and the death of almost 5,000
dominicans each year of AIDS. Now the goverment is reacting and patients
are starting to hope again.
 
Rowe coctail is by far the cheapest one in the market regardeless of the
price cuts by Merck. Glaxo has not yet go public about the problem. Out
of the record, they have offered a price cut of 50% on Combivir. Even if
these price cut is really acomplished, ROWE price would be the best. 
 
We have congratulated Merck and we are asking the other multinational
companies to do the same that Merck did cutting the prices for HIV
drugs. We are also asking multinational companies to go farther cutting
the prices for all the drugs in developing and poor countries because
HIV is only one of the health problems illenesses that we have in our
countries in many cases there are another illeneses far more important
than AIDS in our countries. For example, in the Dominican Republic we
still have tubercolosis and almost 30% of adults are suffering of
hypertension without having access to drugs.
 
Thank you again for your support and hope to see you soon.
 
 
Ho-chi Vega