January 15, 2004
Expanded Treatment Access
Ira Magaziner, a long-time Clinton aide and head of the foundation's AIDS initiative, and a team of management consultants and AIDS experts visited the companies' manufacturing plants to help them develop ways to cut costs. The foundation used a similar tactic in October to secure a deal with Ranbaxy Laboratories, Cipla, Matrix Laboratories and Aspen Pharmacare that reduced the prices of commonly used three-drug antiretroviral regimens to 38 cents per patient per day, down from the already discounted price of 55 cents per patient per day (Kaiser Daily HIV/AIDS Report, 1/14). The new agreement, combined with the October agreement, will cut the cost of treating an HIV-positive person from $800 a year to $250 a year in the 13 developing nations where the foundation is operating, Clinton said (New York Times, 1/15). The foundation expects that the deal will allow five million more HIV-positive people to access treatment by 2008 (AFP/Yahoo! News, 1/14). South Africa will be the first to benefit from the plan and within two months is expected to finalize a deal that could save the country almost $300 million over the next five years, Lynn Margherio, executive vice president of the foundation's HIV/AIDS Initiative, said. Mozambique, the Bahamas, Tanzania and Rwanda are expected to be the next countries to benefit from the deal, according to Reuters/Post (Reuters/Washington Post, 1/15). The foundation is receiving private funding for its treatment project and has received pledges from several developed countries -- including Canada, Ireland, Norway and Sweden -- to contribute directly to programs in specific developing countries (Associated Press, 1/14).
Reaction
Company executives attending the press conference said that they planned to make up for lower profit margins with higher sales volume, the AP/Long Island Newsday reports (Dobnik, AP/Long Island Newsday, 1/14). "We are systematically changing the economics of AIDS treatment," Clinton said, adding that the companies had done an "astonishing service" by agreeing to the deal (Barber, Financial Times, 1/15). "By pushing down the price of HIV/AIDS medicine and laboratory tests, we are ramping up the ability of developing countries to treat millions of people, and to do so with the kind of quality of care that people with AIDS in the developed world usually receive," Clinton said (AFP/Yahoo! News, 1/14). Richard Feachem, executive director of the Global Fund to Fight AIDS, Tuberculosis and Malaria, said that the Clinton Foundation "has made a major contribution to the fight against HIV/AIDS" (New York Times, 1/15).
Back to other news for January 15, 2004
Search the Newsroom archive
Reprinted with permission from kaisernetwork.org. You can view the entire Kaiser Daily HIV/AIDS Report, search the archives, or sign up for email delivery at www.kaisernetwork.org/dailyreports/hiv. The Kaiser Daily HIV/AIDS Report is published for kaisernetwork.org, a free service of the Kaiser Family Foundation, by The Advisory Board Company. © 2003 by The Advisory Board Company and Kaiser Family Foundation. All rights reserved.