AEGiS-WSJ: AIDS Drugs Meant for Africa Show Up in European Market

Important note: Information in this article was accurate in 2002. The state of the art may have changed since the publication date.

AIDS Drugs Meant for Africa Show Up in European Market

Wall Street Journal - October 4, 2002
Gautam Naik, Staff Reporter of The Wall Street Journal

LONDON -- Profiteers diverted about $15 million (Ç15.2 million) of cut-price AIDS drugs meant for Africa to the European market, where they were sold for higher prices, Dutch authorities said.

The Netherlands' General Health Inspection Service said it was investigating a tiny Dutch company it identified as Asklepios for allegedly importing the shipments of two drugs made by GlaxoSmithKline PLC to the Netherlands and Germany. Asklepios "has refused cooperation," said Raymond Salet, spokesman for the General Health Inspection Service, an arm of the Dutch government. "We've handed the investigation over to the police."

Asklepios couldn't be reached for comment.

The shipments of Combivir and Epivir were meant for patients in the Congo, Senegal, the Ivory Coast and other West African countries, according to Mr. Salet. Instead, of the 36,000 boxes of drugs intended for Africa, about 30,000 boxes ended up on German pharmacy shelves, while the rest went to the Netherlands.

This is the first known case of AIDS drugs being diverted from Africa since Glaxo and others agreed two years ago to supply AIDS medication to poor countries under a preferential pricing arrangement. In the Netherlands, a package of 60 Combivir tablets -- one month's supply -- sells for about Ç400. By comparison, Glaxo makes Combivir available to certain African countries at discounts of as much as 90%.

Write to Gautam Naik at gautam.naik@wsj.com
021004
WJ021001

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