GSK today announced significant new price reductions for its HIV medicines offered on a not-for-profit basis to the world’s poorest countries. This reduction is the fifth time the company has made a price reduction as part of its pioneering preferential pricing policy originally introduced in 1997.
The price reductions will apply across the range of GSK’s antiretrovirals offered at not-for-profit prices. The most significant reduction, of almost 40 per cent, will be on Ziagen oral solution (abacavir), which is recommended by the World Health Organization (WHO) for use in first-line and second-line regimens within resource-limited settings, particularly for children.
The average reduction across GSK’s 14 not-for-profit HIV medicines is 21 per cent. These prices will take effect immediately for public sector customers and not-for-profit organisations in all the Least Developed Countries and Sub-Saharan Africa, as well as countries with eligible Global Fund and PEPFAR projects.
A number of factors have enabled GSK to implement these price changes, including improvements and efficiencies in manufacturing and supply, and reductions in the costs of active ingredients. These latest prices have been calculated based on the cost incurred by GSK, and savings realised are reflected in the new prices and passed on directly to purchasers. The prices include insurance and freight and are applicable to orders of any size and are not dependent on quantity.
JP Garnier, CEO GlaxoSmithKline said: “I have seen for myself the devastating impact of HIV/AIDS, and the continued response of the global community to this epidemic is vital. This further reduction in pricing of our HIV medicines demonstrates GSK’s ongoing commitment to patients in the world’s poorest countries. We also continue to focus on the research and development of new medicines and vaccines, and to build partnerships with others to help improve access and investment in communities.”
Source: GlaxoSmithKline, USA