FYI:...Drug company raises US price of AIDS drug five-fold

[Guest guest]

BMJ 2004;328:974 (24 April), doi:10.1136/bmj.328.7446.974-a

News roundup

Drug company raises US price of AIDS drug five-fold

Florida, Fred Charatan

A decision made earlier this year by Abbott Laboratories to raise the U S

price of its protease-inhibiting drug Norvir from about $1,500 (£843;€1,240)

to $7,800 (£4,380;€6450) annually, which provoked an outcry among AIDS

sufferers and organisations, has come under the spotlight in a Federal

public hearing.

The price of Norvir in other countries is much lower, because of government

pricing restrictions. In Belgium, for example, is costs less than $720

(£440; €645) annually. Norvir is an adjunct of “drug cocktails” taken by

many AIDS patients, to enhance the effectiveness of nearly all other

protease inhibitors they may be taking.

Abbott justifies its price hike by explaining that patients are using

smaller doses of Norvir than originally expected. The price increase was

intended to recoup these losses. Because prices are regulated abroad but not

in the U S, American consumers often end up in effect subsidizing overseas

patients.

Dr Leonard, Abbott’s Vice President in charge of drug development said,

“To continue the work in H.I.V. and other therapeutic areas, we decided that

the appropriate thing to do to resource our program was to make up our

losses with the price increase.”

“The cost of AIDS medicines today is what funds the research for better

treatments and cures for tomorrow,” said Alan Holmer, president of the

Pharmaceutical Research and Manufacturers of America, the drug industry’s

trade association. ”It’s true that other developed countries are free-riding

on American research and we need to address that, particularly in trade

agreements,” he added.

The Health and Human Services Importation Task Force of the Department of

Human Services held a public hearing on 14 April to review the whole

question of prescription drug importation. The hearing included 32 scheduled

presentations plus unscheduled public comments, but at the time of going to

press, no final summary was available.

The five-fold increase in the price of Norvir in the U S gave the hearing

added significance. Norvil was developed with the aid of a National

Institute of Health grant in 1996 following an eight-year research effort at

Abbott.

“The taxpayers already paid for this invention, so if anything it should be

cheaper in the United States,” said Love, director of the Consumer

Project on Technology, a group that pushes for lower drug prices, and was

one of the 33 scheduled speakers at the hearing.

Mr Love has petitioned the National Institutes of Health to take advantage

of the fine print included in the NIH grant to Abbott, which allowed the

federal government to insist upon “reasonable prices” for discoveries made

with federal money. But these provisions have rarely been invoked, for fear

of antagonizing the drug companies, and leading to loss of their cooperation

with federal health authorities.

Increasing support in Congress for legalising prescription drug imports, has

led Senator Grassley, an Iowa Republican, to introduce legislation

that would gradually legalise such imports from Canada, Australia and

Europe. Senator Kerry, Democrat of Massachusetts, and his party’s

presumptive presidential nominee, supports prescription drug import

legislation, which is expected to be a campaign issue in the November

presidential election.

[Guest guest]

BMJ 2004;328:974 (24 April), doi:10.1136/bmj.328.7446.974-a

News roundup

Drug company raises US price of AIDS drug five-fold

Florida, Fred Charatan

A decision made earlier this year by Abbott Laboratories to raise the U S

price of its protease-inhibiting drug Norvir from about $1,500 (£843;€1,240)

to $7,800 (£4,380;€6450) annually, which provoked an outcry among AIDS

sufferers and organisations, has come under the spotlight in a Federal

public hearing.

The price of Norvir in other countries is much lower, because of government

pricing restrictions. In Belgium, for example, is costs less than $720

(£440; €645) annually. Norvir is an adjunct of “drug cocktails” taken by

many AIDS patients, to enhance the effectiveness of nearly all other

protease inhibitors they may be taking.

Abbott justifies its price hike by explaining that patients are using

smaller doses of Norvir than originally expected. The price increase was

intended to recoup these losses. Because prices are regulated abroad but not

in the U S, American consumers often end up in effect subsidizing overseas

patients.

Dr Leonard, Abbott’s Vice President in charge of drug development said,

“To continue the work in H.I.V. and other therapeutic areas, we decided that

the appropriate thing to do to resource our program was to make up our

losses with the price increase.”

“The cost of AIDS medicines today is what funds the research for better

treatments and cures for tomorrow,” said Alan Holmer, president of the

Pharmaceutical Research and Manufacturers of America, the drug industry’s

trade association. ”It’s true that other developed countries are free-riding

on American research and we need to address that, particularly in trade

agreements,” he added.

The Health and Human Services Importation Task Force of the Department of

Human Services held a public hearing on 14 April to review the whole

question of prescription drug importation. The hearing included 32 scheduled

presentations plus unscheduled public comments, but at the time of going to

press, no final summary was available.

The five-fold increase in the price of Norvir in the U S gave the hearing

added significance. Norvil was developed with the aid of a National

Institute of Health grant in 1996 following an eight-year research effort at

Abbott.

“The taxpayers already paid for this invention, so if anything it should be

cheaper in the United States,” said Love, director of the Consumer

Project on Technology, a group that pushes for lower drug prices, and was

one of the 33 scheduled speakers at the hearing.

Mr Love has petitioned the National Institutes of Health to take advantage

of the fine print included in the NIH grant to Abbott, which allowed the

federal government to insist upon “reasonable prices” for discoveries made

with federal money. But these provisions have rarely been invoked, for fear

of antagonizing the drug companies, and leading to loss of their cooperation

with federal health authorities.

Increasing support in Congress for legalising prescription drug imports, has

led Senator Grassley, an Iowa Republican, to introduce legislation

that would gradually legalise such imports from Canada, Australia and

Europe. Senator Kerry, Democrat of Massachusetts, and his party’s

presumptive presidential nominee, supports prescription drug import

legislation, which is expected to be a campaign issue in the November

presidential election.

[Guest guest]

BMJ 2004;328:974 (24 April), doi:10.1136/bmj.328.7446.974-a

News roundup

Drug company raises US price of AIDS drug five-fold

Florida, Fred Charatan

A decision made earlier this year by Abbott Laboratories to raise the U S

price of its protease-inhibiting drug Norvir from about $1,500 (£843;€1,240)

to $7,800 (£4,380;€6450) annually, which provoked an outcry among AIDS

sufferers and organisations, has come under the spotlight in a Federal

public hearing.

The price of Norvir in other countries is much lower, because of government

pricing restrictions. In Belgium, for example, is costs less than $720

(£440; €645) annually. Norvir is an adjunct of “drug cocktails” taken by

many AIDS patients, to enhance the effectiveness of nearly all other

protease inhibitors they may be taking.

Abbott justifies its price hike by explaining that patients are using

smaller doses of Norvir than originally expected. The price increase was

intended to recoup these losses. Because prices are regulated abroad but not

in the U S, American consumers often end up in effect subsidizing overseas

patients.

Dr Leonard, Abbott’s Vice President in charge of drug development said,

“To continue the work in H.I.V. and other therapeutic areas, we decided that

the appropriate thing to do to resource our program was to make up our

losses with the price increase.”

“The cost of AIDS medicines today is what funds the research for better

treatments and cures for tomorrow,” said Alan Holmer, president of the

Pharmaceutical Research and Manufacturers of America, the drug industry’s

trade association. ”It’s true that other developed countries are free-riding

on American research and we need to address that, particularly in trade

agreements,” he added.

The Health and Human Services Importation Task Force of the Department of

Human Services held a public hearing on 14 April to review the whole

question of prescription drug importation. The hearing included 32 scheduled

presentations plus unscheduled public comments, but at the time of going to

press, no final summary was available.

The five-fold increase in the price of Norvir in the U S gave the hearing

added significance. Norvil was developed with the aid of a National

Institute of Health grant in 1996 following an eight-year research effort at

Abbott.

“The taxpayers already paid for this invention, so if anything it should be

cheaper in the United States,” said Love, director of the Consumer

Project on Technology, a group that pushes for lower drug prices, and was

one of the 33 scheduled speakers at the hearing.

Mr Love has petitioned the National Institutes of Health to take advantage

of the fine print included in the NIH grant to Abbott, which allowed the

federal government to insist upon “reasonable prices” for discoveries made

with federal money. But these provisions have rarely been invoked, for fear

of antagonizing the drug companies, and leading to loss of their cooperation

with federal health authorities.

Increasing support in Congress for legalising prescription drug imports, has

led Senator Grassley, an Iowa Republican, to introduce legislation

that would gradually legalise such imports from Canada, Australia and

Europe. Senator Kerry, Democrat of Massachusetts, and his party’s

presumptive presidential nominee, supports prescription drug import

legislation, which is expected to be a campaign issue in the November

presidential election.

[Guest guest]

BMJ 2004;328:974 (24 April), doi:10.1136/bmj.328.7446.974-a

News roundup

Drug company raises US price of AIDS drug five-fold

Florida, Fred Charatan

A decision made earlier this year by Abbott Laboratories to raise the U S

price of its protease-inhibiting drug Norvir from about $1,500 (£843;€1,240)

to $7,800 (£4,380;€6450) annually, which provoked an outcry among AIDS

sufferers and organisations, has come under the spotlight in a Federal

public hearing.

The price of Norvir in other countries is much lower, because of government

pricing restrictions. In Belgium, for example, is costs less than $720

(£440; €645) annually. Norvir is an adjunct of “drug cocktails” taken by

many AIDS patients, to enhance the effectiveness of nearly all other

protease inhibitors they may be taking.

Abbott justifies its price hike by explaining that patients are using

smaller doses of Norvir than originally expected. The price increase was

intended to recoup these losses. Because prices are regulated abroad but not

in the U S, American consumers often end up in effect subsidizing overseas

patients.

Dr Leonard, Abbott’s Vice President in charge of drug development said,

“To continue the work in H.I.V. and other therapeutic areas, we decided that

the appropriate thing to do to resource our program was to make up our

losses with the price increase.”

“The cost of AIDS medicines today is what funds the research for better

treatments and cures for tomorrow,” said Alan Holmer, president of the

Pharmaceutical Research and Manufacturers of America, the drug industry’s

trade association. ”It’s true that other developed countries are free-riding

on American research and we need to address that, particularly in trade

agreements,” he added.

The Health and Human Services Importation Task Force of the Department of

Human Services held a public hearing on 14 April to review the whole

question of prescription drug importation. The hearing included 32 scheduled

presentations plus unscheduled public comments, but at the time of going to

press, no final summary was available.

The five-fold increase in the price of Norvir in the U S gave the hearing

added significance. Norvil was developed with the aid of a National

Institute of Health grant in 1996 following an eight-year research effort at

Abbott.

“The taxpayers already paid for this invention, so if anything it should be

cheaper in the United States,” said Love, director of the Consumer

Project on Technology, a group that pushes for lower drug prices, and was

one of the 33 scheduled speakers at the hearing.

Mr Love has petitioned the National Institutes of Health to take advantage

of the fine print included in the NIH grant to Abbott, which allowed the

federal government to insist upon “reasonable prices” for discoveries made

with federal money. But these provisions have rarely been invoked, for fear

of antagonizing the drug companies, and leading to loss of their cooperation

with federal health authorities.

Increasing support in Congress for legalising prescription drug imports, has

led Senator Grassley, an Iowa Republican, to introduce legislation

that would gradually legalise such imports from Canada, Australia and

Europe. Senator Kerry, Democrat of Massachusetts, and his party’s

presumptive presidential nominee, supports prescription drug import

legislation, which is expected to be a campaign issue in the November

presidential election.