E-DRUG: Drug pricing report from MSF
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[first message from the AIDS conference in Durban; copied from DRUGINFO,
the South African "E-drug". WB]
Hi all
Today at the joint MSF-TAC organised satellite meeting on Access to HIV-
AIDS Drugs, held in Durban ahead of the opening of the XIIIth AIDS Conference,
Daniel Berman mentioned a recent MSF study on drug pricing. The full report is
available on the web at
http://msf.org/advocacy/accessmed/reports/2000/07/aidspricing/
The abstract to the report "HIV/AIDS medicines pricing report
"Setting objectives: is there a political will?" by Carmen P�rez-Casas, D.
Berman, P. Chirac, T. Kasper, B. P�coul, I. de Vincenzi and T. von Schoen-
Angerer , reads as follows:
BACKGROUND: Ninety five percent of people with HIV/AIDS live in developing
countries, and the vast majority of them do not have access to medicines that
are prolonging and improving the lives of people with HIV/AIDS in industrialized
countries.
METHODS. This report compares institutional prices of 10 essential drugs for
HIV/AIDS in 8 countries and examines the affect on prices of generic availability
and patent status. Justifications for high prices of originator branded products
including the role of government in R&D, and time-to-approval, are also
explored.
RESULTS. According to analysed data, the minimum price for AIDS drugs in
the countries studied is, on average 82% less than the US price. Price
differences have significant repercussions. For example, the report points out
that it costs the Brazilian public health system the same amount to treat 1,000
people living with HIV/AIDS per month as it does the Ugandan government to
treat 228 individuals.
DISCUSSION. The widely divergent prices found, puts into question current
drug pricing and highlights the lack of transparency with regard to the
relationship between production costs and prices. On the other hand, it is clear
that competition from the generic industry, and international institutions
involvement, leads to dramatic reductions in prices.
RECOMMENDATIONS. There are several mechanisms to improve access to
more affordable drugs, even if the country in need is already compliant with the
TRIPS agreement. Available information suggests that it is feasible to bring
yearly treatment cost with ARVs down to US$200 per patient, per year, in
developing countries. The conclusion to the report is that the means to
dramatically reduce prices are within reach, but what is needed is the political
will to mobilise resources on a global scale.
However, to emphasise the not inconsiderable methodological difficulties in
comparative pricing surveys, the report also contains the following important
warning "THE PRICE INFORMATION PRESENTED IN THIS REPORT IS NOT
EXHAUSTIVE AND SHOULD ONLY BE CONSIDERED AS AN INDICATION OF
THE VARIATION IN PRICES BETWEEN COUNTRIES FOR GIVEN DRUGS."
As the conference progresses, so I'll try to address other drug policy related
issues.
regards
Andy Gray
Co-ordinator: Drug Management
Initiative for Sub-District Support
Health Systems Trust
andy@healthlink.org.za
http://www.hst.org.za
PO Box 70451, Overport, 4067
Tel: 27-31-2044358 Fax: 27-31-2044792
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