Glaxo Cuts Prices On AIDS Drugs For Poor Nations
4 CommentsBy Ed Silverman // February 20th, 2008 // 7:14 am
Glaxo announced what it calls “significant new price reductions” for its HIV drugs that are offered on a not-for-profit basis to the world’s poorest countries. The reductions, the fifth such cut since 1997, apply to all of its HIV medss 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 says the cuts will take effect immediately for public sector customers and not-for-profit organisations on the United Nations list of ‘Least Developed Countries’ 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’s Emergency Plan for AIDS Relief, otherwise known as PEPFAR.
In discussing the move, Glaxo says the price cuts reflect “including improvements and efficiencies in manufacturing and supply, and reductions in the costs of active ingredients”
Bob Freeman
Interesting piece–I don’t 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’m not all that convinced either that price concessions are sustainable in the long-term.)
I am more impressed with Roche’s corporate decision to forgo patent registrations in these countries as well as their commitment to building a manufacturing and distribution networks in those countries.
truthman
How kind of Glaxo…
Good PR Move..
That’s about all it amounts to…
Bob Freeman
Agree, Truthman. Certainly nothing new.
Ray-Anne Carr
I would be interested to see the source countries of some of these starting materials and the risk assessment carried out on the long term viability of the strategy.
Of course the true impact of this generous decision will only be seen by patients when the local purchasing and distribution network matches theoretical policy with on the ground medical treatment.