States, Territories Negotiate $65M in Annual Price Concessions for HIV/AIDS Drugs From Eight Pharmaceutical Companies
August 6, 2003
State and territorial health officials have negotiated about $65 million in annual price concessions from eight major pharmaceutical companies for antiretroviral drugs supplied through their AIDS Drug Assistance Programs, the Wall Street Journal reports (Fuhrmans, Wall Street Journal, 8/6). ADAPs, which are state-managed, federally funded programs, provide HIV treatment to low-income, uninsured and underinsured HIV-positive individuals (Kaiser Daily HIV/AIDS Report, 7/10). About 84,000 HIV-positive people -- one-third of the U.S. market for HIV/AIDS-related drugs -- procure their medications through such programs, which cost about $850 million each year (Wall Street Journal, 8/6). As of June, fifteen states had waiting lists or access restrictions on their ADAPs, and six more states anticipated having to impose new or additional restrictions on their programs in fiscal year 2003, according to a report from the National Alliance of State and Territorial AIDS Directors. ADAP representatives from California, Florida, Maryland, Massachusetts, New Jersey, New York, North Carolina and Texas -- states that collectively account for 75% annual ADAP drug expenditures -- since March have been negotiating with representatives from Bristol-Myers Squibb, Roche, GlaxoSmithKline, Merck, Pfizer, Abbott Laboratories, Boehringer Ingelheim and Gilead Sciences to discuss ways of alleviating the budget shortfalls that state ADAPs are currently facing (Kaiser Daily HIV/AIDS Report, 7/10). The initiative marks the first time that all 56 state and territorial ADAPs have come together to increase their leverage in negotiating price discounts. BMS, which was the last company to reach an agreement with the group, said that its agreement provides as much as $35 million in drug discounts over 20 months, covering the company's five main AIDS-related treatments, including its new protease inhibitor Reyataz.
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This article was provided by Henry J. Kaiser Family Foundation. It is a part of the publication Kaiser Daily HIV/AIDS Report. Visit the Kaiser Family Foundation's website to find out more about their activities, publications and services.