The Hindu Business Line : Matrix in pact with Clinton Foundation

Hyderabad May 9 Matrix Laboratories Ltd (MLL), a subsidiary of Mylan Laboratories Inc, has signed an agreement with the Clinton HIV/AIDS Initiative (CHAI) that helps in significantly lowering the price of AIDS treatment for second-line anti-retroviral drugs (ARVs).

The agreement would also bring down the costs of the new, once-a-day pill that is currently cost prohibitive in the developing world. UNITAID, an international drug purchase facility established in 2006 by France, Brazil, Chile, Norway and the UK would provide the foundation with more than $100 million to buy these second-line medicines through 2008.

The deal positions the Hyderabad-based MLLas one of the key suppliers of the affordable second-line ARV drugs into 66 low- and middle-income countries in Africa, Asia, Latin America and the Caribbean, according to a company press release.

Second-line treatment is required for patients who develop resistance to first-line treatment and typically costs 10 times the price of first-line therapy. Nearly half a million patients will require these drugs by 2010.

More access

The company has developed efficient low-cost processes to reduce prices significantly, allowing more widespread access to second-line treatment.

Meanwhile, the Clinton Foundation and UNITAID announced price reductions on 16 AIDS medicines for 66 developing countries. The cost of second-line treatments falls by 25 per cent in low-income, 50 per cent in middle-income countries.

The "Next Generation" one-pill, once-daily AIDS treatment would now be available for less than $1 per day, they said in a press release from New York.

Pact with Cipla

The former US President, Mr Bill Clinton, announced new agreements with generic drug manufacturers Cipla and Matrix. "Seven million people in the developing world are in need of treatment for HIV/AIDS," he said.

In partnership with UNITAID, the Clinton HIV/AIDS Initiative issued an open invitation in March to 15 manufacturers for proposals to supply second-line drugs this year. Cipla and Matrix, a division of Mylan Laboratories, agreed to price their drugs on a "cost-plus" basis and collaborated with the foundation to lower production costs, in part by securing lower prices for key raw materials and by addressing major chemistry challenges.

More Stories on : Alliances & Joint Ventures | Health | Pharmaceuticals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page