Australia Set to Make Deal with Drug Makers

July 3, 2001

Australia Set to Make Deal with Drug Makers to Provide Cheaper AIDS

Drugs to Asian Nations

The Australian government is " about to seal an agreement " with the

Australian branches of Pfizer Corp., Glaxo Wellcome PLC, Bristol-Myers

Squibb, Merck Sharp & Dohme, Bayer Corp. and Boehringer Ingelheim that

would cut the price of AIDS drugs for people in the Asia-Pacific

region, the Sydney Morning Herald reports. The agreement would reduce

the annual cost of treating people with HIV/AIDS in countries such as

Thailand, Papua New Guinea and Fiji from about $5,100 to " as little "

as $255.

Australia Health Minister Wooldridge said, " I think making

low-priced pharmaceuticals available would be of enormous benefit in

fighting the spread of HIV in our region. Asia could very well become

the world epicenter of HIV if we take our eye off the ball. " Under

the agreement, the drug companies would not receive tax breaks or " any

other special treatment " for providing the price reduction. " This

would be the companies showing that they are good citizens and getting

ahead of the game, rather than being dragged kicking and screaming

into agreement, " Wooldridge said. He added that he hoped to " firm up "

the agreement after he returned from the U.N. special session on AIDS.

Alan , chief executive of the Australian Pharmaceutical

Manufacturers Association, said, " We are looking forward to continued

discussions with the minister when he comes home and are getting a

full report from him of developments at the AIDS conference. " The

agreement requires a " number of bilateral agreements with the

countries involved, " the Morning Herald reports.

Wooldridge said he wanted the first lot of the cheaper drugs to go to

HIV-positive pregnant women (Riley, Sydney Morning Herald, 6/29).

Australian Senior Health Official Rob Moodie, who is helping

coordinate AIDS policy in Asia, said the " ambitious " plan would " save

lives, " but added that even with the price break, the drugs would

still be too expensive for " hundreds of millions of people " (Reuters,

6/29).

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