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Abbott Bows to AIDS Activists on Kaletra Pricing, Says AIDS Healthcare Foundation


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2007-04-10 21:18:12 -

LOS ANGELES, April 10 /PRNewswire/ -- AIDS Healthcare Foundation (AHF), the US' largest HIV/AIDS healthcare, prevention and education provider, which operates free AIDS treatment clinics in the US, Africa, Latin America/Caribbean and Asia, today applauded US drug giant, Abbott Laboratories for its offer earlier today to lower its price for some HIV/AIDS drugs, including Kaletra, in Thailand and more than 40 other low and low-middle income countries. With Abbott's offer, the price of Kaletra in Thailand will drop from roughly $2,200US to approximately $1,000US. AHF believes Abbott's

move came in part from pressure from AIDS activists worldwide -- and in particular, from activists in Thailand -- in response to widespread protests and outcry over Abbott's decision last month to blacklist Thailand by withdrawing applications for its new drugs' approval from the country's government review process. That shortsighted move by Abbott followed Thailand's announcement in March that it would begin to issue compulsory licenses to allow for manufacturing of cheaper generic versions of several Abbott medications including Kaletra, following unsuccessful drug price negotiations between Abbott and the Government of Thailand.

"We applaud Abbott today for its offer to significantly reduce the price and increase the availability of Kaletra and Aluvia in Thailand and other low and lower-middle-income countries, a price that is even less than what the Thai government had been seeking," said Michael Weinstein, AIDS Healthcare Foundation's President. "This is really a huge victory for AIDS activists worldwide over one of the most formidable opponents in the drug industry. Abbott's action today could result in tens of thousands of additional lives being saved in Thailand and elsewhere, and it sends a message of hope to millions of others living with HIV/AIDS worldwide that better drugs may soon be on the way."

After Thailand issued the compulsory license for Kaletra earlier this year, Abbott began negotiating price reductions with Thai officials. Thailand appeared to be willing to engage in negotiations, but Abbott would initially only take $200US off the $2,200US price (per patient yearly). It is estimated that with Thailand's compulsory license, a generic version of Kaletra can be produced for just over $1,000 per patient yearly.

"It is our understanding that when Thailand first announced it would issue compulsory licenses last month, the Government of Thailand acted in accordance with all international regulations, including a commitment to pay royalties to Abbott for all sales of generic Kaletra," said Terri Ford, AIDS Healthcare Foundation's Director of Global Advocacy. "AIDS Healthcare Foundation treats people all over the world in our free clinics, and we know how desperately these drugs are needed. We applaud Abbott for today's offer to reduce its prices, and urge Abbott to revisit its previous move to blacklist Thailand from approval of several of its newer drugs, a move that merely punishes the Thai people in need of lifesaving medications."

In the Asia-Pacific region, AIDS Healthcare Foundation currently provides free anti-retroviral treatment through its clinics in India, China and Cambodia, and is opening a center in Vietnam.

Source: AIDS Healthcare Foundation

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