E-DRUG: Roche finally lowers price of nelfinavir
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[We reported earlier in E-drug that Roche had not yet lowered the price of
its nelfinavir. Finally, after 10 months, Roche has given in to pressures
from MSF and developing countries. Below 2 messages pasted together,
crossposted (with thanks) from IP-Health. WB]
http://www.accessmed-msf.org/prod/publications.asp?scntid=13220031435336&co
ntenttype=PARA&
Bowing to pressure, Roche cuts its price for AIDS drug nelfinavir
13 February, 2003
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Geneva, 13th February, 2003 - Starting in April last year, M�decins Sans
Fronti�res (MSF) has been urging pharmaceutical company Roche to reduce
its price for nelfinavir (brand-name Viracept�), a crucial second-line
AIDS drug that was priced out of reach of most patients in developing
countries. Roche's announcement today that they will sell nelfinavir
with significant reductions in poor countries is a welcome result of
this long campaign.
"We are very pleased with this price reduction, and glad to see that
Roche acknowledges that their pricing policy was flawed," explains
Daniel Berman, from MSF's Campaign for Access to Essential Medicines.
"The long struggle to reduce the price of this Roche drug is proof of
the limitations of a fully voluntary system. For new drugs, there needs
to be an internationally-supported enforceable system that reduces
prices to affordable levels in developing countries."
Generic competition remains the most effective means to push prices
down. However, for newer drugs for which no generic equivalents are
available, a system of affordable prices from originator companies is
critical.
The case of nelfinavir
While other AIDS drug producers taking part in the UN Accelerating
Access Initiative had long ago set up a differential pricing system for
poor countries and were offering drugs at 87-92% off Swiss prices, Roche
was only offering a 40-50% discount. In fact, nelfinavir was
significantly more expensive in Guatemala (US$8,358 per patient per
year) and the Ukraine (US$7,110) than in Switzerland (US$6,169).
With this new discount, Roche will now charge approximately US$900 per
patient per year for least developed countries and sub-Saharan Africa,
down from US$3,171. At just over 85% off Swiss prices, this discount is
equivalent to those offered by other multinational pharmaceutical
companies. Roche has also established a price of just under US$3,000 per
patient per year for middle-income countries, unfortunately only 48% off
Swiss prices.
It is also important to note that Roche's published prices are
"ex-factory": additional fees for freight and insurance will be added to
the drug price, raising the price by around 20% for the customer.
Published prices by other pharmaceutical companies such as Merck and
Bristol-Myers Squibb already include these charges.