AEGiS-AP: Abbott raises AIDS drug price more than 400 percent

Important note: Information in this article was accurate in 2003. The state of the art may have changed since the publication date.

Abbott raises AIDS drug price more than 400 percent

Associated Press - December 19, 2003

NORTH CHICAGO, Ill. (AP) -- Abbott Laboratories Inc. is hiking the U.S. price of an important AIDS drug more than fourfold, citing its sharp increase in treatment value and the costs of improving its formulation.

The company informed doctors, AIDS groups and pharmacies of the change in price in Norvir earlier this month, company spokeswoman Melissa Brotz said Friday. The wholesale price for a month's treatment of the protease inhibitor is being raised to $265 from $54, she said.

The dramatic price hike was reported by The Wall Street Journal, which said the increase has created a furor among AIDS groups and other critics of the move.

Norvir is not a top seller for Abbott but is used extensively in small doses to boost the potency of some AIDS combination-drug therapies.

"The value of Norvir in HIV treatment has increased dramatically since it launched several years ago," Brotz said. "The new price of Norvir continues to represent a small fraction of the cost of an HIV treatment regimen."

Critics of the price hike cited by the Journal say Abbott's intention is to push patients away from using Norvir in drug cocktails and switch to its newer AIDS treatment, Kaletra -- something Abbott denies. They also say the company's decision involving the 7-year-old drug raises questions about the industry's traditional contention that drug prices are high because of the need to recoup research and development costs.

"This really puts a lie to the idea that companies set drug prices to fund their R&D," Michael Weinstein, president of the AIDS Healthcare Foundation, told the newspaper. His group operates clinics in the United States, Africa and Central America.

Responding to the criticism, Brotz said the North Chicago-based company did not take the decision lightly. "One of our priorities was ensuring that the impact was minimal for patients," she said.

The company expanded its patient assistance program so patients without prescription drug coverage or public assistance could receive the drug for free, she said. Abbott also froze the price of Norvir to AIDS drug assistance programs.

Abbott shares fell 17 cents to close at $46.40 on the New York Stock Exchange.

031219
AP031239

AEGiS is a 501(c)3, not-for-profit, tax-exempt, educational corporation. AEGiS is made possible through unrestricted funding from Broadway Cares/Equity Fights AIDS, Elton John AIDS Foundation, National Library of Medicine, Pacific Life Foundation, and donations from users like you.

Always watch for outdated information. This article first appeared in 2003. This material is designed to support, not replace, the relationship that exists between you and your doctor.

AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.

Copyright ©1980, 2003. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .