Glaxo relents on AIDS drugs
---------------------------
Revamped pharmaceutical company cuts treatment prices for Africa
Andrew Clark
Thursday February 22, 2001
The Guardian
GlaxoSmithKline yesterday attempted to defuse the criticism of its
role in developing countries by pledging more cut price anti-Aids and
HIV drugs for terminally ill patients in Africa.
The firm's chief executive, Jean-Pierre Garnier, promised to extend a
scheme of low cost medicines as the newly merged group revealed an-
nual profits of GBP 5.32bn - equivalent to more than GBP 14m a day.
Mr Garnier said: "GlaxoSmithKline is a new company. I have made it a
priority from day one to urgently review what more we can do to sig-
nificantly help in this epidemic."
Glaxo sells four out of 10 of the world's anti-Aids drugs. The com-
pany launched an initiative last year named Accelerated Access, under
which Aids treatments were made available to African governments at
US$ 2 (GBP 1.40) a day, rather than the usual US$ 16.
Mr Garnier said the offer would be widened so that all "not for
profit agencies with the ability to deliver medicines" could take it
up.
The announcement drew a guarded welcome from charities. A spokesman
for Oxfam said: "It's a welcome step in the right direction. At last,
it's a very public recognition by a world drugs leader that prices
are a key issue to millions of sick people."
He pointed out that any new drugs for tuberculosis, pneumonia and
childhood diarrhoea were likely to be similarly in demand and asked:
"Africa's only one continent. When will this sort of corporate phi-
lanthropy be extended across the world?" Three countries - Senegal,
Rwanda and Uganda - have agreed to buy drugs under the Accelerated
Access scheme and Glaxo has received interest from a further 31 gov-
ernments. Mr Garnier said: "We are not going to wait for the govern-
ments to close these deals but are going to go directly to NGOs [non-
governmental organisations]."
Glaxo has come under fire for taking legal action to prevent local
manufacturers from making cheap copies of its drugs. Mr Garnier made
it clear the firm would continue to protect its patents: "If we can
furnish governments with these drugs at affordable prices, there is
not much point in allowing any other company to come in."
He added that there were continuing problems ensuring that hi-tech
medicines were used appropriately: "This is not like giving aspirin
to a person and sending them home. There needs to be follow-up and a
proper level of care."
Glaxo's sales of Aids drugs rose 14% to GBP 1.15bn, although this in-
cluded only GBP 114m from countries outside Europe and the US.
The group's overall profits rose 11% at constant currencies, driven
by a strong performance from new diabetes drug Avandia, which con-
tributed sales of GBP 462m. Mr Garnier described Avandia as "the star
of the show", and predicted further growth as public health campaigns
lead to earlier diagnosis of the condition.
Asthma drug Seretide produced revenue of GBP 208m. It is due to be
launched in the US in April and is expected to be a big seller -
Glaxo predicted that it would become "the gold standard treatment for
recurrent asthma".
GlaxoSmithKline's shares rose 85p to GBP 19.20. Analysts said the fig-
ures were on target, but many are keen for more news at a briefing on
drug development today.
The group revealed that the merger of Glaxo Wellcome and SmithKline
Beecham cost GBP 121m in fees to bankers, lawyers and other advisers.
Mr Garnier said: "Despite some natural anxiety and hesitation, over-
whelmingly our employees have embraced the new company."
Guardian Unlimited c Guardian Newspapers Limited 2001
Source:
http://www.guardian.co.uk/Print/0,3858,4139992,00.html
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* South African Treatment Action Campaign (TAC) has called on gov-
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* Aids - a global crisis, 01-Dec-2000, The Guardian
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