HIV drug price cut for poor countries

Abbott Laboratories cut the price of its HIV drug to poor countries by more than half, responding to pressure from the United Nations and Thailand's threat that it may make a generic version.

Abbott will sell Kaletra for $1,000 a patient for a year's supply, 55 percent less than the average cost paid now by those countries, the Abbott Park, Illinois-based company said in a statement today. Margaret Chan, director-general of the World Health Organization, a UN agency, brokered the agreement after Thailand said in January said it may make generic versions.

The agreement may help alleviate a dispute that began in January when Thailand said it may copy several patent-protected HIV and cancer medicines to reduce prices, and increase the number of people with access to the drugs. The Pharmaceutical Research and Manufacturers' Association, a company trade group, responded then that its members wouldn't introduce new medicines in Thailand as a result.

The new agreement "takes HIV pricing out of the debate, and now we hope we can have a thoughtful debate about a system society needs in order to bring forth new medicine while increasing affordability," said Abbott spokeswoman Melissa Brotz in a phone interview today. "Obviously because Thailand is a low-middle tier country, they're eligible for this price." "The withdrawal of registration for new medicines" in Thailand "has not changed," she said.

The poorest countries already receive HIV treatment at lower prices, Brotz said. The new pricing takes effect for companies that are low to low-middle income, as defined by World Bank criteria.

The World Bank in August recommended Thailand consider breaking patents on AIDS drugs, citing World Trade Organization provisions that allow governments in some cases to permit generic-drug production without patent owners' consent.

The new price of Kaletra "is lower than any generic price available in the world today for this medicine," Abbott said in its statement. Kaletra will be available in Thailand and at least 39 other countries at the new price, the company said.

Abbott's shares fell 15 cents to $57.06 at 4 p.m. in New York Stock Exchange composite trading. The company's stock has increased 17 percent this year.

source:www.chicagotribune.com