Agreement with laboratory guarantees lower price for AIDS treatment drug

08/07/2005 - 21h45

Agência Brasil

Brasília - A note released by the Ministry of Health on Friday (8) informed that, after ten days of negotiations, an agreement was reached with the American pharmaceutical company, Abbott Laboratories, assuring a significant price reduction for the drug, Kaletra (Lopinavir+Ritonavir), over the next six years, thus "guaranteeing the sustainability of the National Sexually Transmitted Diseases/Aids (DST/AIDS) Program," through which medications are distributed for free to HIV victims. This outcome, according to the note, also ensures "access to the new formulation of Kaletra that will be launched globally in two years and the transfer of technology for domestic production of this medication."

The price reduction will amount to at least US$ 18 million next year and up to US$ 259 million in six years. According to the communication, "the agreement also determines that the increase in the number of patients treated will not raise annual expenditures for the purchase of Kaletra. 23,400 patients currently receive Kaletra through the program, and it is estimated that this number will reach 60,000 in six years."

In the agreement, the Ministry of Health also ensured the supply of pediatric Kaletra for the next six years, regardless of the increase in the number of children treated.

The communication also informs that "the Abbott Laboratories agreed to effectuate a technology transfer process to enable the FarManguinhos Laboratory to produce the medication in Brazil. This process will begin in 2009."

Brazil was threatening to break the patent on the medication, if the two sides failed to reach an agreement on reducing the price.

Translation: David Silberstein