AEGiS-Reuters: Merck Plans No More AIDS Drug Price Cuts

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Merck Plans No More AIDS Drug Price Cuts

Reuters NewMedia - Monday November 26, 2001


NEW YORK (Reuters) - Merck & Co. Inc. is not planning further cuts in HIV drug prices for poor nations, despite a World Trade Organization agreement this month that could lead to competition from cheaper copycat medicines, a company official said.

Guy Macdonald, Merck vice president of anti-infectives, said generic drug makers are unable to match Merck's prices for protease inhibitor Crixivan and Stocrin, two anti-HIV drugs that are sold at cost in poor nations.

Merck cut prices of its protease inhibitor Crixivan to $600 a year and Stocrin for $500 to fight HIV, the virus that causes AIDS. A year's regimen of Crixivan in the United States costs $6,016 and Stocrin, which is marketed as Sustiva in the United States, costs about $4,730.

Several drug companies lowered prices on HIV and AIDS treatments for poor nations after critics claimed drugmakers were placing patents and profits ahead of care, especially with millions of people in sub-Saharan Africa suffering from HIV.

Earlier this month, the World Trade Organization reached an agreement in Qatar that would allow poor nations suffering from pandemics like AIDS and malaria to get better access to cheap drugs by allowing them to skirt traditional patent rules.

"We would try and work with the public sector to make more products available," Macdonald said in a conference call about its efforts to improve access to Merck's HIV drugs in poor nations. Ahead of World AIDS Day on Dec. 1, Merck highlighted its efforts in Botswana, where more than one of every three adults is HIV positive.

Merck, Botswana's government and the Bill & Melinda Gates Foundation are increasing education efforts, as well as treatment programs. Multibillionaire Bill Gates is chairman of software leader Microsoft Corp..

Dr. Banu Khan, a public health specialist in Botswana, said in the conference call that the country, which has one of the highest HIV infection rates in the world, hopes to have 110,000 receiving treatment over the next five years. Presently, the nation of 1.6 million has about 300,000 HIV positive people, she said.

"We're strengthening partnerships to find a way to ensure there is a better balance between the care and management of HIV," Macdonald said. Over 100 nations qualify for discounted HIV or AIDS treatments and 48 have accepted Merck's offer to buy the drugs at cost. Macdonald said the company has made progress with nongovernmental organizations distributing the drugs in poor nations.

Other companies that are involved in efforts to improve access to HIV care include Germany's Boehringer-Ingelheim, Bristol-Myers Squibb Co. of the U.S., GlaxoSmithKline Plc of Britain and the F. Hoffman -- La Roche unit of Roche Holding Ltd. of Switzerland.
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