30 June 2003
Jean-Pierre Garnier
The World Health Organization estimates that there are 6 million people
living with HIV/AIDS in the developing world and the former Soviet Union in
acute need of antiretroviral therapy, yet only approximately 300,000 people
are currently receiving treatment in these countries, with a majority of
these people in one country, Brazil.
Although generic competition has been a critical factor in reducing the
prices of antiretroviral drugs, most of the originator companies have
responded by making significant price reductions for the developing world.
However, the criteria and terms of these discounts vary from company to
company. Some of these price reductions are limited to sub-Saharan Africa or
the world's least developed countries (according to United Nations
classification), while others depend on a formula that combines a nation's
human development index score and its prevalence of HIV infection. Even if
a country is eligible for a discount, the pharmaceutical manufacturers may
put restrictions on the kinds of institutions that can take advantage of
these prices. Furthermore, the terms and conditions of shipment,
particularly the inclusion of transportation and customs costs, vary from
company to company as well.
We are writing to ask for discounts and other concessionary offers to be
extended to all countries, except those that are members of the Organization
for Economic Co-Operation And Development (i.e. Australia, Austria, Belgium,
Canada, Czech Republic, Denmark, Finland, France, Germany, Greece, Hungary,
Iceland, Ireland, Italy, Japan, Korea, Luxembourg, Mexico, Netherlands, New
Zealand, Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland,
Turkey, United Kingdom, United States) and the exploration of further
reductions in the prices of these life-saving medications to as close as
possible to marginal cost of production. We are also asking that these
price reductions be made available to all public and private institutions,
including private clinics, pharmacies and employers that are committed to
distributing these medications on a not-for-profit basis. Furthermore,
standard international procurement procedures should be established for all
discount and concessionary offers to allow rational drug supply management
at the country level. Finally, all discounts and concessionary offers
cannot be tied to the renouncement of countries' rights to parallel
importing or compulsory licensing of generic medications as allowed under
current trade regulations.
We would like to meet with you as soon as possible to discuss these
requests. A more systematic, transparent approach to differential pricing
would be an important step in facilitating wider access to antiretroviral
therapy. With one price for all non-OECD countries, broad and uniform
eligibility criteria for discounts and concessionary offers and standard
international procurement procedures, it will be far easier for all
countries and treatment initiatives, and importantly people living with
HIV/AIDS, to obtain these drugs at a reasonable cost.
Yours truly,
Chief Executive Officer
GlaxoSmithKline
Glaxo Wellcome House
Berkeley Ave
Greenford, Middlesex
UB6 ONN, England
UK
Miles D. White
Chairman of the Board and Chief Executive Officer
Abbott Laboratories
100 Abbott Park Road
Abbott Park, IL 60064-6400
USA
Peter R. Dolan
Chairman and Chief Executive Officer
Bristol Myers Squibb Company
345 Park Avenue, New York, NY 10154-0037
USA
Franz B. Humer
Chief Executive Officer
F. Hoffman-La Roche Ltd.
Group Headquarters
Grenzacherstrasse 124
CH-4070 Basel
Switzerland
John C. Martin, PhD
President and Chief Executive Officer
Gilead
333 Lakeside Drive
Foster City, CA 94404
USA
Raymond V. Gilmartin
Chairman, President and Chief Executive Officer
Merck & Co., Inc.
One Merck Drive
P.O. Box 100
Whitehouse Station, NJ 08889-0100
USA
Rolf Krebs
Chairman of the Board
Boehringer Ingelheim GmbH
55216 Ingelheim am Rhein
Germany
Henry A. McKinnell, Ph.D.
Chief Executive Officer
Pfizer, Inc.
235 East 42nd Street
New York, NY 10017
USA
Dear Sirs:
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