Roche, manufacturer of nelfinavir, is facing criticism over the pricing of its protease inhibitor nelfinavir (Viracept) - despite a commitment yesterday by Roche's HIV business manager that the company will reduce the cost of the drug.
Speaking at the Sixth International Congress on Drug Therapy in HIV Infection, David Reddy said that Roche is committed to reducing the cost of nelfinavir. However, he did not specify how large the reduction will be.
Medecins sans Frontieres says that Roche’s pricing policy for nelfinavir is inconsistent – whilst the drug costs $6,169 in Switzerland, it costs $7,110 in Ukraine, and the company is charging Cameroon more than the least developed country price of $3,171, despite the fact that annual per capita income in the country is only $570.
MSF is demanding a consistent differential pricing system for least developed countries, with nelfinavir offered at a discount of 87-92% below the Swiss price (implying an annualized cost of around $620). They point out that nelfinavir is five times more expensive than reduced prices offered by Merck for indinavir and Abbott for lopinavir.
However, Roche claims that it is restricted in its ability to cut prices by a royalty agreement with Pfizer, the parent company of the drug’s developer, Agouron.
Daniel Berman of MSF disputes this, citing a letter he received from Chuck Hardwick of Pfizer last month, in which he said that “Roche has the flexibility to price Viracept as they determine on a country by country basis…the royalty agreement is based on a percentage of sales. Our royalty would be reduced proportionately with any price reductions, and should Roche want to donate Viracept, there would be no royalty due Pfizer.”
Roche is also facing criticism over the pricing of saquinavir.
Professor Bernard Hirschel of Geneva’s University Hospital has written to Roche’s Chief Executive Franz Humer asking him “to go over the books again” regarding claims that saquinavir is available in Thailand at a price of $1 to$2.50 a day.
“I know Thailand quite well, and have asked my Thai colleagues for updated information prices”, he wrote in a letter to Roche chairman Franz Humer last month.
According to Hirschel, Fortovase is available at a cost of 5514 baht per package of 180 200mg capsules. At the recommended dose of 3600mg a day, this equals $4639 per year.