Business Wire - September 6, 2002
"The reduction is meaningless when GSK's Trizivir remains 600% higher than generic prices for life-saving triple-combination treatment," said Michael Weinstein, President of AIDS Healthcare Foundation. "In fact, yesterday's news from London is tragic: GSK's drugs won't be available any time soon to the 8,500 who die daily in poor countries."
Weinstein said the rationale used by the pharmaceutical giant as the basis of its new price "is not credible. GSK said yesterday that it had discovered cheaper ways of manufacturing its products overseas, while generic manufacturers already produce such drugs at profit for as low as $238 per year for a comparable triple-drug combination. In contrast, GSK's new price remains a staggering $1600 per year for the triple-combination needed to treat HIV/AIDS."
Weinstein called on Glaxo to immediately match generic prices, especially since it invented none of the three drugs included in Trizivir. "GSK did not invent these drugs, and they have no legitimate or moral right to continue to put profit above African, Asian, Caribbean and Latin American lives. They and the patent holders must immediately match the generic prices or allow generics throughout the world to license the drugs for widespread access."
Earlier this year, AHF sued GSK for its drug pricing policies after having discovered that GSK invented none of the highly priced drugs in Trizivir. AIDS Healthcare Foundation operates clinics in the US and in Africa that offer anti-retroviral treatment free to needy patients, and has fought to bring down prices in order to expand access to such treatment.
"Yesterday's GSK press release was a cynical attempt at media manipulation in light of the damage GSK has sustained because of our lawsuit," said Weinstein. "The fact is, their products remain too expensive and are unlicensed in the neediest countries and therefore out of reach of those dying of AIDS."
In July, AHF filed a federal lawsuit charging British-owned GlaxoSmithKline with anti-trust violations that could break the manufacturer's monopolistic hold on key AIDS drugs in the United States.
"They lied to the patent office in the 1980's about discovering AZT's ability to treat AIDS, and in doing so secured exclusive rights to manufacture it," said AHF President Michael Weinstein. "AZT was developed with federal assistance in the 1960's, and the National Institutes of Health tested it for HIV use in the 1980's, but Glaxo secured patents on the substance in the'80s and locked competitors out. They then priced AZT at thirty-two times the cost of manufacture, a practice repeated with every new AIDS drug since then."
AHF -- a non-profit that provides medical care to over 12,000 uninsured patients -- is suing for damages created by such artificially high prices. "It's patent piracy that has cost untold numbers their lives and is denying treatment to millions today," said Weinstein, "all in the name of corporate greed."
AHF's lawsuit describes a pattern of such abuse by GSK in marketing AIDS drugs. AHF charges that Glaxo's abacavir (Ziagen) and 3TC (lamivudine) are manufactured and sold pursuant to exclusive licenses from the University of Minnesota and Emory University. "Despite the fact that the drugs were developed with public assistance, GSK is doing all that it can to gouge the public and price the drugs out of reach," said Weinstein.
AHF claims damages as a major purchaser of these medications for its uninsured patients. "Enron's fraud cost jobs and savings," said Weinstein. "GSK's fraud has cost AIDS patients their lives, and has cost the federal and state governments billions of dollars in ill-gotten gain."
AHF in the past has criticized GSK for spending too little on assisting people with AIDS in the developing world, which by Glaxo's own account is about $55 million over the last decade. "That's three-tenths of one-percent of Glaxo's AIDS drug sales," said Weinstein.
In calling for pricing based on cost, Weinstein contrasts the annual price of triple-combination anti-retroviral care charged by GSK, generics manufacturer Cipla, and the Thai government: "Glaxo charges the U.S. government $10,600 annually, Cipla's price is $440, and the Thai's charge $336. Since Glaxo didn't invent or discover AZT, Ziagen or 3TC, what could possibly justify the difference?" In developing nations, Glaxo's so-called preferential prices are also up to double that charged by Bristol Myers Squibb, Merck and Pfizer, said Weinstein.
CONTACT: AIDS Healthcare Foundation
Cesar Portillo, 323/860-5202, 213/509-3263 (cell)
SOURCE: AIDS Healthcare Foundation
020906
BW020901
Copyright © 2002 - Business Wire. All rights reserved. Reproduced with permission. Reproduction of this article (other than one copy for personal reference) must be cleared through the Business Wire, Permissions Desk, Business Wire, 1185 Avenue of the Americas, 3rd Floor, New York, NY 10036; Tel: (212) 575-8822; FAX: (212) 575-1854. http://www.businesswire.com.
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, the National Library of Medicine, Pacific Life Foundation and donations from users like you.
Always watch for outdated information. This article first appeared in 2002. 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, 2002. 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. .