US drug giant Abbott cuts price of Aids drug in poor countries More than 40 poor nations will benefit from the drug price cut
Thursday, April 12, 2007
ABBOTT Laboratories has agreed to radically cut the price of a key Aids treatment in more than 40 poor countries amid a rising controversy over the cost of its drugs, the Chicago-based pharmaceutical giant said yesterday.
Abbott came under fire after it decided last month not to market its new medicines in Thailand following a dispute over drug pricing.
The decision to cut the cost of Kaletra by more than 55 per cent in countries defined as low and low-middle income by the World Bank was welcomed by activists.
"This is really a huge victory for Aids activists worldwide over one of the most formidable opponents in the drug industry," said Michael Weinstein, President of the Aids Healthcare Foundation in Los Angeles.
Abbott agreed to cut the cost of Kaletra treatment to US$1,000 a year from the current rate of US$2,200 a year after it was approached by the World Health Organisation (WHO).
That price is below the cost of available generic versions of the drug, Abbott said.
Kaletra is a vital component treatment for the growing number of people who no longer respond to their first set of Aids/HIV medications.
The decision was welcomed by the WHO, which said in a statement that it would continue to work to "address the immediate need to rapidly increase access and affordability of life saving drugs, while maintaining the long-term need to foster research and development in innovative medicines".
The drug company said in a statement that it will "immediately begin discussions with individual countries where Abbott's patents are respected to maximise the number of patients that can be provided Kaletra/Aluvia capsules and tablets at this new price".
The dispute with Thailand remains unresolved, but Abbott said the price cut would also apply to an older version of the Aids drug that it currently sells in Thailand.
That version, which requires refrigeration, is impractical in a hot climate such as Thailand, said Doctors Without Borders, which has criticised Abbott for refusing to sell its new, heat-stable version of Kaletra in Thailand.
The first HIV case was diagnosed in 1994.
AFP
Abbott came under fire after it decided last month not to market its new medicines in Thailand following a dispute over drug pricing.
The decision to cut the cost of Kaletra by more than 55 per cent in countries defined as low and low-middle income by the World Bank was welcomed by activists.
"This is really a huge victory for Aids activists worldwide over one of the most formidable opponents in the drug industry," said Michael Weinstein, President of the Aids Healthcare Foundation in Los Angeles.
Abbott agreed to cut the cost of Kaletra treatment to US$1,000 a year from the current rate of US$2,200 a year after it was approached by the World Health Organisation (WHO).
That price is below the cost of available generic versions of the drug, Abbott said.
Kaletra is a vital component treatment for the growing number of people who no longer respond to their first set of Aids/HIV medications.
The decision was welcomed by the WHO, which said in a statement that it would continue to work to "address the immediate need to rapidly increase access and affordability of life saving drugs, while maintaining the long-term need to foster research and development in innovative medicines".
The drug company said in a statement that it will "immediately begin discussions with individual countries where Abbott's patents are respected to maximise the number of patients that can be provided Kaletra/Aluvia capsules and tablets at this new price".
The dispute with Thailand remains unresolved, but Abbott said the price cut would also apply to an older version of the Aids drug that it currently sells in Thailand.
That version, which requires refrigeration, is impractical in a hot climate such as Thailand, said Doctors Without Borders, which has criticised Abbott for refusing to sell its new, heat-stable version of Kaletra in Thailand.
The first HIV case was diagnosed in 1994.
AFP
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