The Hindu Business Line : Four Indian drug cos join Clinton’s efforts against malaria

Mumbai, July 18 Indian drug companies, Cipla, Calyx Chemicals, Ipca Laboratories and Mangalam Drugs, have joined former US President Mr Bill Clinton’s efforts against malaria.

In an announcement from New York, Mr Clinton has announced agreements with six companies, including Holley Pharmaceuticals and PIDI Standard, besides the four Indian drug companies, that lower by 30 per cent the price of a leading artemisinin-based combination therapy (ACT) for malaria. This reduces by 70 per cent the price volatility of artemisinin, the key raw material for this and other ACTs, a press communiqué said.

The announcement was made along with United Nations Special Envoy on Malaria and Novartis Chairman and Chief Executive, Dr Daniel Vasella.

Up to 500 million people around the globe need malaria treatment each year. The agreement makes prices for malaria drugs more affordable and sustainable to help meet growing global demand, the note said.

The prices will be available to 69 countries in Africa, Asia, Latin America and the Caribbean that make up the Clinton HIV/AIDS Initiative (CHAI) purchasing consortium, it added. Clinton’s Foundation has in the past sourced AIDS-drugs from Indian companies Ranbaxy and Cipla, at reduced prices.

Price fluctuations

The scale-up ACT access has been challenged by significant volatility in the artemisinin market. Beginning in 2004, a rapid but uneven increase in ACT demand led to the price of artemisinin fluctuating, the note said.

Novartis, the dominant ACT supplier to date, absorbed much of the financial impact, shielding patients from higher prices — which would have decreased access. However, acting alone Novartis cannot meet increased future demand across the globe. The agreements will help to mitigate risk so new suppliers can enter the market, the note explained.

Under the agreements negotiated by CHAI, Ipca and Cipla will offer a co-blister formulation of artesunate+amodiaquine (AS+AQ) — one of the most widely used ACTs — at or below an average ceiling price of 48 cents a per treatment, a reduction of more than 30 per cent from current market rates. They also will offer artemether-lumafantrine, the other common ACT, at or below an average ceiling price of 91 cents, the current price available from Novartis.

Among the other manufacturers party to the agreements, Calyx and Mangalam are active ingredient suppliers, and Holleypharma (Beijing) and PIDI (Guangzhou) are suppliers of the raw material, artemisinin.

In addition to their price commitments, Ipca and Cipla have agreed to pursue rapid development and regulatory approval of a fixed-dose combination for AS+AQ, which is not yet available from any supplier approved by the World Health Organization but is preferable to the co-blister form.