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More AIDS patients may get cheaper drugs

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LONDON (AP) — Gilead Sciences Inc., one of the world’s biggest

producers of AIDS drugs, will allow some of them to be made by

generic manufacturers – potentially increasing their availability

in poor countries, particularly in Africa, officials said

Tuesday.

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In the first deal of its kind, the Foster City, California-based

pharmaceutical company has agreed to allow four of its AIDS drugs

to be made by generic drug companies at a cheaper cost in return

for a small proportion of royalties, United Nations health

officials said.

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Most of the 33 million people worldwide who have HIV, the virus

that causes AIDS, live in Africa. One of the drugs will also be

used to treat people with hepatitis.

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The deal was negotiated by the Medicines Patent Pool, part of a

U.N.-led partnership that raises money for AIDS, tuberculosis and

malaria by things like taxing airplane tickets. Among the

partnership’s 29 member countries, only Chile, France, Korea, Mali

and Niger are actually implementing the airline tax.

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Last year, the U.S. National Institutes of Health allowed one of

its patented drugs to be made generically via the same group, but

this the first deal with a private company. Several other

pharmaceutical companies, including F. Hoffman-La Roche, Sequoia

Pharmaceuticals and ViiV Healthcare, a joint venture between

GlaxoSmithKline PLC and Pfizer Inc., are in talks with the

group.

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“We will continue to work with Gilead and others to expand access

to all people living with HIV in developing countries,” said Ellen

‘t Hoen, executive director of the Medicines Patent

Pool.

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Gilead will receive from three to five percent royalties on its

four drugs, which will be supplied to about 100

countries.

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Gilead Sciences mainly makes drugs for AIDS, liver disease, heart

disease and respiratory problems. Last year, it reported revenues

of almost $8 billion, a fraction of the amount generated by larger

companies like Johnson & Johnson and Pfizer, which make several

times that.

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Until now, its drugs have been mainly sold in rich countries, and

profits from the new deal are expected to be a tiny part of those

Gilead gets from the West.

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Typically, patients in poor countries have to wait for years until

the patents expire on new drugs before they can be made more

cheaply by generic companies.

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But some experts questioned whether the deal went far enough and

pointed out it specifically excludes manufacturers in Thailand and

Brazil, which both produce large amounts of generic

drugs.

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“This agreement is an improvement over what other big pharma

companies are doing to ensure access to their patented AIDS

medicines in developing countries,” said Michelle Childs, a

director at Doctors Without Border’s campaign for access to

essential medicines. Still, she warned caution was necessary and

that the new deal “should not become the template for future

agreements.”

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Other major drugmakers including Johnson and Johnson, Abbott

Laboratories and Merck & Co. have so far declined to formally

negotiate with the U.N.-led group.

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Online:

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