GSK further lowers HIV/AIDS and anti-malarial drug prices

GlaxoSmithKline (GSK) has reduced further the not-for-profit preferential prices of its HIV/AIDS medicines by up to 33% and its anti-malarial medicines by up to 38%. The global pharma giant says the price reductions are the latest stage in its efforts to improve healthcare in the developing world through preferential pricing, community investment, and r&d of medicines and vaccines for developing world diseases.

'We are delivering on our commitment to review prices for these essential medicines for patients in 63 of the world's poorest countries,' said Jean-Pierre Garnier, ceo of GlaxoSmithKline. 'We are also expanding our existing initiatives in sub-Saharan Africa to find appropriate ways to offer not-for-profit prices to core public employees such as teachers, nurses, police and fire-fighters not covered by health insurance, and to private employers who do not have their own workplace clinics.'

GSK sets a single, sustainable, not-for-profit, preferential price for each of its anti-retrovirals and anti-malarials to eligible customers in the least developed countries and sub-Saharan Africa. Sustainable preferential pricing means setting prices at levels that meet the company costs and ensure a sustained supply of these medicines for as long as patients need them. The price reductions are the result of a review of manufacturing costs and of increased economies of scale.

Since June 2001 GSK has increased tenfold its shipments of preferentially priced Combivir to the developing world and has secured 115 arrangements to supply preferentially priced HIV/AIDS medicines to 42 countries. It has also set up pilot projects in five African countries to assess the impact of preferential pricing of a broader range of products.

Over the same period it has begun the first human clinical trials of its HIV candidate vaccine, and approved 18 new clinical trials in developing countries in conjunction with other partners. These are part of a total of 35 clinical trials involving HIV medicines in developing countries.

Dr Garnier said 'GSK's approach on improving access to medicines is based on partners working together to establish a sustainable framework for improved healthcare in developing countries. This framework includes pharmaceutical industry commitment to preferential pricing, as well as government support for intellectual property protection and prevention of both diversion and price-referencing of preferentially-priced medicines.