E-DRUG: Is Abbott violating Colombia's price order and cheating people living with HIV/AIDS?
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Earlier this year, Colombian HIV/AIDS groups won major price
reductions for the antiretroviral lopinavir + ritonavir (Abbott's
Kaletra) through a compulsory license campaign. While the Colombian
health ministry eventually turned down the license request "for now",
the campaign moved the government to fix a price ceiling for Kaletra,
some 54-68% lower than Abbott's previous prices. The price ceiling
should reduce the average annual treatment cost per person by about
$2,000 per year.
Nevertheless, reports are surfacing that Abbott may be defying the
price order in its sales to some buyers. The National Medicines
Pricing Commission (Cnpm), which imposed the ceiling, is
investigating. An article this week in El Tiempo, Colombia's largest
newspaper, quoted an anonymous knowledgeable source in Colombia's
largest healthcare providers association, saying Abbott's prices have
not changed. (Officially, the association reported it could not
disclose the prices it pays Abbott, due to a confidentiality
agreement.) And receipts from a separate source show at least one
consumer recently paid prices considerably higher than the ceiling.
Although Abbott has not commented on the reports, it has petitioned
the government to revoke the price order.
Health Minister Diego Palacio sent healthcare providers a letter last
week concerning lopinavir+ritonavir's new price, saying the state
"will prevent any person or company from abusing their dominant
position in the market." If the Pricing Commission's investigation
reveals Abbott has failed to comply with the price order, it will
refer the case to the Agency for Industry and Competition (SIC) to
levy sanctions.
Notably, Abbott's refusal to comply with the price order would
provide Colombia new and persuasive legal grounds to issue a
compulsory license: precisely the anti-competitive conduct cited by
Minister Palacio in his letter. In order to maintain credibility and
preserve its authority, the Colombian government needs to take swift
and stern action. Colombian HIV/AIDS groups will make the case.
August 31
JORGE CORREA C.
REDACCIÓN DE ECONOMÍA Y NEGOCIOS