Brasília, 8/13/2003 (Agência Brasil - ABr) - Drugs which are used in the so-called AIDS cocktail are not going to have their prices reduced, reports the coordinator of Brazil's STD/AIDS Program, Alexandre Grangeiro. The coordinator made his comment following a second round of negotiations with pharmaceutical companies.

Grangeiro called the situation very worrisome due to the fact that the budget for those drugs next year has been set at R$516 million, while the actual cost will probably be around R$573 million.

Brazil's STD/AIDS Program distributes 14 anti-retrovirals free of charge. Three of the anti-retrovirals are very expensive; their purchase eats up 63% of the program budget (around R$350 million annually). Some 70,000 patients use at least one of the three expensive anti-retrovirals.

In order to reduce costs, Brazil seeks to make the anti-retrovirals in one of its state-controlled labs, which could reduce the cost by R$280 million. This could be done under license or by breaking the patents on the drugs. With regard to licensing, the pharmacuetical companies are studying a Brazilian proposal.

But minister of Health, Humberto Costa, has ordered the state-controlled lab (Farmanguinhos) to prepare to produce the drugs and set a deadline of August 31 for a final result of negotiations with the pharmaceutical industry. Also under study is the possibility of importing generic drugs. (AB)