United Press International - Friday, May 12, 2000
John Zarocostas

The move comes shortly after President Clinton on May 10 signed an executive order which aims to make AIDS related drugs and medical technologies more accessible and affordable in sub-Saharan Africa by easing the terms under which countries in the region could license the manufacture of life saving drugs without being subjected to punitive U.S. trade measures.

The executive order noted that approximately 34 million people living in sub-Saharan Africa have the disease and that of those affected about 11.5 million have died, which accounts for about 83 per cent of the total HIV/AIDS related deaths worldwide.

The pharmaceutical majors involved in the talks include the British giant Glaxo -Wellcome; Germany's Boehringer Ingelheim, Switzerland's F. Hoffmann-La Roche, and the two U.S. based companies Bristol-Myers Squibb, and Merck & Co.

"The HIV epidemic in developing countries, particularly in sub-Saharan Africa, is a major health crisis. It threatens to wipe out development and economic gains made in the second half of the last century," said Glaxo-Wellcome Chairman, Sir Richard Sykes.

"The companies are offering, individually, to improve significantly access to, and availability a range of medicines. Other pharmaceutical companies have also expressed interest in cooperating in this endeavor," an official of the UNAIDS said.

"This is a promising step in a long term process," said Peter Piot, the executive director of the UNAIDS, a United Nations agency. Other agencies in the talks included the World Health Organization, the United Nations Children's Fund, the World Bank, and the United Nations Population Fund.

The International Federation of Pharmaceutical Manufacturers Associations, which represents more than 55 national industry organizations in rich and developing nations, said they " welcome " the new dialogue between the UN organizations and the five companies to explore ways to accelerate the provision of HIV/AIDS care and treatment and labeled the talks as "constructive. "

A senior U.N. official engaged in the talks, speaking on condition of anonymity, said that the pharmaceutical companies have indicated to drop their prices substantially.

Glaxo-Wellcome said Thursday it was extending its program of preferential pricing - used in partnership programs in developing countries,- to include Retrovir (zidovudine/AZT), Epivir (Lamivudine/3TC) and Combivir (the fixed dose combination of zidovudine and lamivudine).

It said the price for a double combination would be around $2 per day. This is substantially less compared with the price the combination retails in the U.S. and Europe.

One health policy expert pointed out, however, that even if prices were slashed by 90 per cent, it could still be too high to buy in some Sub-Saharan nations and suggested that governments and multilateral agencies such as the World bank would have to make up the remaining difference.
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