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Govt, pharma cos to discuss AIDS drugs price-cut today

P.T. Jyothi Datta

New Delhi , Nov. 16

THE first step towards possibly bringing down the price of anti-AIDS drugs in India is set to be taken on Monday, with the Union Health Minister, Ms Sushma Swaraj, scheduled to meet domestic drug majors who have carved a niche for themselves in the global generic drugs market, especially the anti-AIDS segment.

This comes on the heels of the arrangement that the Clinton Foundation had struck with three Indian companies — Cipla, Ranbaxy and Matrix — to supply anti-retrovirals (ARVs) or anti-AIDS drugs, at one-third its existing price, to the African countries.

While the drug majors were lauded by sections in the health sector for playing a significant role in making ARVs accessible and affordable in African markets, one of the regions worst hit by the AIDS epidemic, questions are being raised on why domestic pharma companies are not providing ARVs at affordable costs to HIV patients in India.

Of the 4.2 million people with HIV/AIDS in India, an estimated 40 lakh require ARVs, estimate healthcare workers.

The Health Ministry sources confirmed Ms Swaraj's meeting with the drug companies and said that pricing was high on the agenda. "At present, drugs in the first line of treatment cost a patient Rs 1,500 per month, the Ministry will try to bring it down to about Rs 300 per month in the Government programme," they said.

Pharma industry sources told Business Line that representatives from Cipla, Ranbaxy, Matrix, Aurbindo and Hetero had been called for the meeting. "The pharma companies reaction to take price-cuts would depend on the drugs the Government requires. The Government should have a composite programme in terms of procurement and distribution of the drugs, besides screening and monitoring whether the regimen is adhered to."

Using the Clinton Foundation deal as a case in point, pharma circles point out that the "negotiated tender" process is a successful model, where the Government procures the bulk ingredient at a subsidised price for the pharma companies and the latter in turn could manufacture the volumes for a guaranteed market. "ARVs priced at about $350 per annum for a patient, came down to $140, thanks to a similar arrangement by the Clinton Foundation," they observed.

Meanwhile, Mr K.K. Abraham, Indian Network of People Living with HIV/AIDS, had earlier told this correspondent that pharma companies and the Government need to also look at the cost of laboratory tests, based on which the ARV regimen is decided.

Ms Anjali Gopalan, Executive Director, Naaz Foundation India Trust — working in the area of prevention and care with HIV — is in agreement. "The meeting should look at the price of testing and drugs used at the different stages, besides working on training doctors to deal with the illness, not just in terms of dispelling the stigma but also in terms of prescribing ARVs and monitoring the regimen."

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