§ Baroness Northoverasked Her Majesty's Government:
Which developing countries are expected to be able to manufacture their own generic drugs to treat HIV and AIDS; and whether they anticipate that this will have the effect of putting pressure on pharmaceutical companies to reduce their prices. [HL5500]
§ Baroness AmosA number of developing countries have levels of capability in their pharmaceutical sector; a detailed list is attached. The developing countries whose generic drug manufacturing capacity is substantial enough to manufacture their own drugs to treat HIV and AIDS include Mexico, Brazil, China, India and South Africa.
All of the factors affecting access to medicines are inter-linked and one strategy alone will not have 331WA sufficient impact on pricing or access to affordable drugs for the poor. However, the lowest world price for average annual triple therapy drugs has been reduced by approximately 95 per cent over the past three years. At the beginning of 2000 anti-retro viral (ARV) triple combination therapy typically cost over 10,000 US dollars. Since then a combination of price reductions by patent based pharmaceutical companies, schemes such as the Accelerated Access Initiative, increased demand through donor financing and the introduction of generic competition have brought prices down to almost 200 US dollars. It is important to note that these are supply side prices and not the price to the end user. Prices can be inflated through taxes, tariffs and other additional costs on their route to a medical centre or patient. It is also important to note that these prices are not available in all developing countries but represent the best world price available.
The factors recognised by the World Health Organisation (WHO) that can improve poor peoples' access to medicines are: affordable pricing, sustainable financing, reliable health and supply systems, and the rational selection and use of existing drugs.
The UK Government are pursuing a number of different approaches to make essential drugs— including those for the treatment of HIV/AIDS— available in developing countries. These include working with other G8 countries, developing country governments, multi-lateral institutions, the pharmaceutical industry (generic and patent-based), investors and NGOs to encourage companies to reduce their prices in developing countries.
The Prime Minister's high level Working Group on Increasing Access to Essential Medicines in the Developing World recommended differential pricing of essential medicines for the developing world. The UK Government are working to secure greater international commitment to affordable pricing.