E-DRUG: Global Fund and in-kind donations of ARVs
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[The Global Fund has finally decided not to accept in-kind donations of ARVs, but to prefer hard cash. This is a wise decision, as donations could have posed logistics problems and also could have reduced generic competition. WB]
[Please note incorrect versions of a similar message appeared on IP-Health and E-med. This is the correct version WB]
July 7, 2004
The Global Fund board has decided not to continue exploring the possibility
of the Fund directly receiving in kind donations (IKD). People that have
been involved in the discussions years ago about in kind drug donations can
only rejoice when hearing this. It seemed already unbelievable enough that
the possibility was being seriously considered!
Indeed, evidence over decades has shown donations of medicines have caused
serious problems. Some of the most significant problems with donations have
been: drain on human resources when donations require burdensome record
keeping and control measures, products arriving with short expiration dates
meaning that they can not be used before they expire, and inappropriate
influence on drug protocols. The list of problems would be too long to write
here�
There is one more crucial aspect of IKDs though: they are sometimes used by
drug makers as an effective strategy to kill generic competition. Often
times a dominant supplier will drop their price or give a donation until
competitors give up, at which time prices rise.
No one is contesting the fact that if NGOs or individuals want to use
donation in answering to their needs and they have the resources to manage a
donation this may be a reasonable strategy on a very small scale, but
international institutions such as the Global Fund cannot possibly benefit
from an IKD strategy.
It is reassuring after the long debates that have taken place on this during
the last months that the Global Fund Board has abandoned the idea of massive
donations. Hopefully this subject is at last closed. More important issues
need the GFATM's attention.
regards
Carmen P�rez Casas
Pharmaceutical Coordinator
Access to Essential Medicines Campaign
MSF
carmen.perez@paris.msf.org
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