Cut-Price HIV Drugs Drive May Spur Patents Clash

UNITAID, an international solidarity tax program to provide AIDS, TB and malaria drugs to low- and middle-income countries, has made negotiating with generic manufacturers for low-cost pediatric and second-line AIDS drugs a priority. However, UNITAID's plans could upset Western pharmaceutical interests that hold the drugs' patents.

As a drug-purchasing vehicle, UNITAID is supported by countries including France, Brazil, Chile, Norway and the United Kingdom. Representatives from those countries met in London last month to finalize spending priorities and will gather again in Toronto Monday during the 16th International AIDS Conference. In principle, 18 other countries support UNITAID.

France could raise $250 million annually through airline taxes ranging from €1-€40 ($1.30-$51 US), depending on flight distance and seating.

UNITAID plans to finalize lower second-line AIDS drug prices with Indian generic firms later this year, raise over $400 million in 2007, and obtain pre-qualification status from the World Health Organization. UNITAID will operate under WHO with a secretariat and governing board; operational details will be unveiled at UN's September General Assembly conference.

One UNITAID advisor estimated generic deals could cut the price of the HIV drug Kaletra by more than 50 percent and greatly expand second-line AIDS drugs access in the developing world.

Under World Trade Organization rules, countries can override a drug patent and issue compulsory licenses to cheaper drug producers in cases of health emergencies. However, pharmaceutical firms and the U.S. government have lobbied to discourage this.

Back to other news for August 14, 2006