GSK reduces price of HIV/AIDS medicines for the developing world

GlaxoSmithKline(GSK) has further reduced the prices of its HIV/AIDS medicines for developing countries by up to 47%. This latest cut takes the price of Combivir to US$0.90/day, Epivir (3TC) to $0.35 and Retrovir (AZT) to $0.75. Combivir costs $18/day in the US.

The price reductions are said by the company to reflect GSK's continuing commitment to improve healthcare in the developing world through preferential pricing, community investment, and research and development of new medicines and vaccines to fight disease.

GSK's single, not-for-profit prices are available in a total of 63 countries, including the Least Developed Countries and all of sub-Saharan Africa. Eligible customer groups include governments, non-governmental organisations, aid agencies, UN agencies and international purchase funds, as well as employers in sub-Saharan Africa who offer HIV/AIDS care and treatment to uninsured staff.

'We are proud of what we have achieved to date in terms of increased shipments of preferentially-priced HIV/AIDS medicines to patients in the developing world. But we want to work with our partners to do more to address the HIV/AIDS pandemic,' said GSK ceo Jean-Pierre Garnier. 'A significant increase in re-sources is still needed. Other actions are also required. Improved healthcare in the developing world can only be delivered if the significant barriers that stand in the way of better access are tackled as a shared responsibility by all sectors of global society - governments, international agencies, charities, academic institutions, the pharmaceutical industry and others.'

In the light of GSK's decision, the Californian charity Aids Healthcare Foundation (AHF) has withdrawn its 'unlawful business practices' false advertising lawsuit against the company. The California lawsuit was one of three pending legal actions brought by AHF against GSK over claims that the company makes concerning its AIDS drug prices and policies.

'Specifically, the case focused on Glaxo's claims of selling 'at cost' and making 'no profit' on its AIDS drugs in the developing world. Glaxo's offer of steep price reductions on its HIV/AIDS medications today is clearly the catalyst for AHF withdrawing this lawsuit,' said Tom Myers, AHF's General Counsel. However, the organisation will continue to pursue two remaining cases - its AZT patent challenge against GSK in Fed-eral Court and its South African Competition Commission Complaint - and says it will press the company 'to fully explore the issue of voluntary licensing its patents in poor countries in need'.

Recently the California Public Employees Retirement System (Calpers), the largest pension fund in the US, called on GSK to make access to Aids drugs easier by cutting prices and easing patent controls, following lobbying from AHF. However, it stopped short of threatening to sell out its $760m holding in GSK stock.