The Hindu Business Line : Govt AIDS project caught in drug price tussle

THE Health Ministry's ambitious HIV/AIDS programme scheduled to commence from April 1 seems to have got caught in the toss up between the Government and the pharmaceutical companies.

Even as the programme is dependent on the availability of cheap drugs, both the pharma industry and the Government have not yet been able to reach any consensus regarding the price of anti-AIDS drugs or anti-retrovirals (ARVs).

Senior officials in the Health Ministry said that with the Finance Ministry announcing duty cuts for some life-saving drugs including those for treatment of HIV/AIDS, the pharmaceutical companies have to finalise the prices.

"The ball is in their (companies) court. They have to respond with their prices," said a senior Health Ministry official. The companies, on their part, have said that there are no indications from the Government on the actual bulk requirement of these drugs.

Sources in the pharma industry said that the Government has not even indicated the quantity of ARVs required during the initial phase of the HIV/AIDS programme.

"We have not heard from the Government on the requirement of ARVs. Also, the Government has to get ready the infrastructure for diagnostics, treatment and also train doctors for treating the patients," said officials in the pharma companies. These companies have not yet placed any orders with their suppliers.

The Health Ministry is targeting one lakh HIV/AIDS patients at a total cost of Rs 200 crore, especially in Tamil Nadu, Andhra Pradesh, Karnataka, Madhya Pradesh and Nagaland. But, with no firm commitments from the Government on the initial drug requirement, pharmaceutical companies are relying on the phased implementation of the project.

"The only way we can meet the demand is if the programme takes off in a phased manner," said the officials.

The Government had last year initiated discussions with Cipla, Ranbaxy, Matrix and others to supply drugs for the programme. The Clinton Foundation had used the `negotiated tender process' with some of these companies and had managed to bring down the prices of ARVs for the African nations to $140 per patient per annum from $350 a patient. The pharmaceutical companies had then said that with cut in customs and excise duties, prices could be brought down by almost 10 per cent.

With a little over a month to go for the programme to commence, the National AIDS Control Organisation (NACO) has yet to embark on any publicity campaign for it. However, as part of the poll politics, a pilot project will be launched in the Health Minister, Ms Sushma Swaraj's constituency at Bellary, Karnataka from May 1 to make the district AIDS-free in the next three years.

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