Abbott lowers prices on HIV drugs
pharmafile | April 12, 2007 | News story | Sales and Marketing |Â Â HIV, parÂ
Intervention from the World Health Organisation has spurred Abbott to lower its prices on HIV drugs in developing countries.
The company has announced it will lower prices for some drugs, including HIV treatment Kaletra in Thailand and 40 other low and low-middle income countries. This means the cost of the drug will drop from $2,200 to around $1,000 per patient.
The dramatic price drop is in contrast to an earlier offer from Abbott, which was believed to be a cut of just $200 to $2,000. The change in tactics means Abbott's price will slightly undercut prices of generic manufacturers, helping the company to retain control of its patents.
The pharma company has come under sustained pressure over its pricing of HIV and other drugs in recent months, including a tit-for-tat row with Thailand over patents.
The Thai disagreement has seen the countrys government break patents on Abbott's HIV drug Kaletra and heart drug Plavix, with Abbott responding by suspending all planned launches of new drugs.
In a bid to end the impasse over price negotiations in Thailand and elsewhere, WHO director general Margaret Chan approached the company to discuss how to improve affordability and access to medicines.
Abbott says the although there is still more work to be done with the Thai government for what it calls a positive outcome. Abbott said that a key part of its discussion with Chan was on maintaining incentives to support developing new medicines.
The company said it would immediately begin discussions with countries where Abbott's patents are respected to maximise the number of patients that can be provided with Kaletra/Aluvia capsules and tablets at this new price. But it warned: "The patents of scientists and inventors must exist so that there are incentives for sustained research and development. Without this system, the miracle drugs the world enjoys today, including HIV medicines, would not exist."
The u-turn comes after new pressure from religious US investors with around $35 million in Abbott shares last month said they were concerned that the company's actions in Thailand might damage its reputation and hit earnings. The Aids Healthcare Foundation, which had accused Abbott of being 'heartless' over its Thai stance, applauded the company's announcement and said that pressure from patient groups was in part responsible for the company's shift.
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