E-DRUG: Colombia sets price ceiling on Kaletra
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[E-drug reported ealier (july 2008) about this case. WB]
dear E-druggers,
Under sustained pressure from civil society groups to grant a
compulsory license, the Colombian government has issued an order
establishing maximum prices for Abbott's HIV/AIDS medicine Kaletra
(LPV/r or lopinavir/ritonavir). The order sets a price ceiling of
$1,067 per person, per year for Kaletra sales to the public sector,
and $1,591 for the private sector, down from around $3,400 and
representing average price reductions around 54% - 68%. The order,
signed by the health and commerce ministers as well as the office of
the President, follows unsuccessful efforts to negotiate better
prices from Abbott. I've pasted below an article that ran in
Monday's El Tiempo newspaper (Bogotá) and includes further details
(in Spanish).
Meanwhile, the Colombian health minister is expected to announce
later this week whether the health ministry finds access to LPV/r to
be in the public interest – a finding that should lead automatically
to a compulsory license. A compulsory license would authorize
generic competition with Abbott's patented product. New Clinton
Foundation agreements with three generics firms offer LPV/r in
partner countries for $470, and Peru recently obtained LPV/r from
Eske Group – a Cipla affiliate – for the low price of $396.
The price ceiling is a direct result of public pressure for a
compulsory license. And competition remains the only way Colombia
can access the far better generics prices, and ensure prices continue
to fall with time. Deep cost savings would enable health programs to
scale up treatment, and come closer to universal coverage.
Concerned their government might be content with its price action,
Colombian civil society groups are arguing a still-expensive monopoly
is no substitute for competition, and demanding the government issue
a compulsory license as proposed.
Please feel free to contact us for more information.
Peter Maybarduk
Essential Action
http://www.portafolio.com.co/economia/economiahoy/2009-05-11/ARTICULO-
WEB-NOTA_INTERIOR_PORTA-5177936.html
[Spanish article removed; see link above for Spanish readers; WB]