Glaxo SmithKline has cut the price of a key drug for second-line use in developing countries by 31%, the company announced yesterday.
Abacavir, marketed by GSK as Ziagen, was recommended by a World Health Organization expert panel last month as a preferred component of second-line antiretroviral treatment in resource-limited settings.
The WHO recommendations were intended to consolidate the market for second-line drugs around a smaller number of products, leading to larger orders that might drive down prices.
In the developed world abacavir is one of the recommended components in first-line treatment, but its high price compared to AZT, 3TC and d4T, together with its activity against HIV that is resistant to those drugs, mean that it is reserved for use after the failure of first-line treatment in developing countries.
GSK says it is cutting the price of abacavir tablets by 31% for least developed countries, to approximately $438 a year. In comparison the cheapest generic version of abacavir, manufactured by Aurobindo, costs $395 per year, according to data compiled by Médecins sans Frontières.
The price of abacavir oral solution, a drug recommended for first or second-line HIV treatment in children, is cut by 40%, to $182 a year.
The price of Kivexa, a once-daily tablet containing abacavir and 3TC, is cut by 28%, to $485 a year. In comparison, Cipla offers a generic version at $243 a year.
Fosamprenavir (Lexiva or Telzir), a protease inhibitor that must be boosted with ritonavir (Norvir), will be available to developing countries at $1222 a year. The World Health Organization’s expert advisers concluded that developing countries should focus on the protease inhibitors lopinavir/ritonavir (Kaletra) and atazanavir in second-line therapy, since these were the drugs with the biggest potential for price reduction and the largest body of experience in usage.
Kaletra is substantially cheaper than fosamprenavir, and atazanavir is expected to become cheaper as the volume of usage rises.
GSK says that price reductions have been possible because of reductions in the costs of raw materials and improvements in manufacturing efficiency. The prices include shipping costs and are not dependent on the volume of drugs ordered.
The prices will be available throughout sub-Saharan Africa and in other least developed countries, as well as any treatment programmes fully funded by the Global Fund or PEPFAR. Eligible customer groups include governments, non-governmental organisations (NGOs), aid agencies, UN agencies and other international purchase funds. Additionally, in sub-Saharan Africa, employers who offer HIV/AIDS care and treatment to uninsured staff are also eligible for GSK's not-for-profit prices for antiretrovirals, the company stated yesterday in a press release.