GSK and Shire release drug rights

GlaxoSmithKline and Shire Pharmaceuticals have signed a landmark agreement with a generics firm in South Africa that will ensure three of their anti-HIV drugs are made more affordable. Despite slashing heavily the costs of the compounds in South Africa, they have still been out of reach of much of the population.

Now GSK and Shire have granted a voluntary licence within South Africa for Aspen Pharmacare to manufacture Retrovir, Epivir and the combination product Combivir. The firms have also agreed to waive their royalty rights to the three products, and instead a 30% fee on net sales will be paid to non-governmental organisations that manage HIV/AIDS programmes within South Africa.

The move follows an extended battle in the country, and increasing pressure for companies to reduce the price of their drugs. Earlier this year, a case brought by major pharmaceutical companies came to trial to stop South Africa gaining access to cheaper HIV drugs through parallel importing and compulsory licensing.

However, the lawsuit was dropped after the South African government said it would recognise the TRIPs agreement, which was designed to protect intellectual property rights.