GSK reduces Combivir price again

Combivir down to 65 cents per day; extensions to South Africa voluntary license

GlaxoSmithKline (GSK) has taken further action to help the world's poorest countries meet the unique challenges of HIV/AIDS. In keeping with its commitment to pass on cost savings in the manufacture of antiretrovirals (ARVs), the company has again reduced the not-for-profit prices of its HIV/AIDS medicines for qualifying countries and organisations. It has also extended the voluntary licence granted to Aspen Pharmacare, sub-Saharan Africa's largest generics company, for the manufacture and sale of antiretrovirals.

The latest reduction lowers the not-for-profit price of Combivir - the backbone of HIV/AIDS treatment regimens currently recommended by the World Health Organisation (WHO) - from US$ 0.90 cents to 0.65 cents per day. GSK has also reduced the not-for-profit price of many of its other HIV/AIDS medicines. For example, Epivir is now available at US$ 0.19 cents per day, and Retrovir at US$ 0.58 cents per day.

The price reductions are made possible by further improvements in the manufacturing process as well as the economies of scale achieved. To date, GSK has secured over 150 arrangements to supply preferen-tially priced HIV/AIDS medicines to 56 countries. In the six months from April to September 2003, GSK shipped over 6m tablets of preferentially priced Combivir.

The current voluntary licence granted to Aspen Pharmacare, which relates to the manufacture and sale of Combivir, Epivir and Retrovir, covers only the public sector in South Africa and Zimbabwe. GSK is now extending this licence to include both the public and private sectors and all countries in the Sub-Saharan region.

'The HIV/AIDS pandemic presents a unique challenge to the global community. The actions we are announcing today demonstrate our commitment to playing an integral role in the global response through sustainable preferential pricing, partnership and community investment, and research and development of new medicines and vaccines to fight disease,' said Jean-Pierre Garnier, CEO of GlaxoSmithKline.

In response to the announcement, Dr. Jack C. Chow, Assistant Director-General of the WHO for HIV/AIDS, TB, and Malaria said: 'WHO welcomes these proactive steps taken by GSK to lower prices and extend its license for the generic manufacture and sale of antiretrovirals in sub-Saharan Africa. Such steps will contribute to the expansion of ARV therapy in resource-poor settings and accelerate progress towards the WHO's goal of providing life-saving ARVs to three million people by the end of 2005.

'When combined with the building of health infrastructures, innovative public-private partnerships and the training of national health workforces, the com-pany's efforts are a major gain in the campaign in support of people living with HIV/AIDS.'

The UK Secretary of State for International Development, Hilary Benn MP, said: 'I very much welcome this announcement from GlaxoSmithKline, particularly the extension of their voluntary licence with Aspen, which will help increase access to essential medicines in developing countries. If we are to combat the HIV/AIDS epidemic, much more is required from developing country governments, industry and donors. The UK is committed to play our part, through treatment and prevention. But what we must not forget is that if poor people are to get access to medicines they also need a functioning health system.'