Transcript The Role of TNC*s and AIDS drugs

The Role of TNCs and AIDS drugs – “Lives
before profits”?
L.O.s
1. To define the terms: TNC, Generic, “Big Pharma”, ARVs,
HAART, Tiered Pricing.
2. To describe the structure of a TNC
3. To explain the role of TNCs in Health Care.
TNCs
• Definition: A company that operates in at least
2 countries. Usually with its HQ and R&D
department in the country of origin and
manufacturing plants overseas.
• Examples of Pharamceutical TNCs (sometimes
called “Big Pharma”): GlaxoSmithKline and
Bayer.
How do TNCs develop new drugs?
• It is estimated that new drug costs $500 million
to bring to market.
• Most money is spent targeting diseases of
affluence as MEDCs can pay high sums for
treatments.
• This figure includes the R&D in labs, clinical trials,
marketing (especially to doctors) etc.
• Patents make it illegal to copy the drug and for
rival companies to make a generic version for
20years.
Brief History of AIDS drugs in Africa
• In 1996, HAART - an effective combination therapy that
delays the onset of AIDS - became available in MEDC’s.
Within four years, death rates for people with HIV/AIDS in
developed countries had dropped by 84%.
• At a cost of US$10,000-15,000 per person per year, these
antiretroviral drugs (ARVs) were far too expensive for the
majority of HIV infected people in resource poor countries.
• Five years after HAART therapy was introduced in the
West, fewer than 8,000 people in sub-Saharan Africa were
receiving the life-saving drugs.
• Big Pharma companies refused to lower prices saying there
would be no money for research and development (R&D),
no innovation, and thus more and more people would die
from AIDS and other deadly diseases.
In 2001 an attempt was made by thirty-nine major pharmaceutical
companies to prosecute the South African government for passing a law that
allowed easy production and importation of generics.
Brief History of AIDS drugs in Africa
• In the Year 2000 an Indian pharmaceutical company called Cipla
started to produce generic antiretrovirals that were exactly the same
as brand versions made by large pharmaceutical companies, but
significantly cheaper.
• This sparked a price war between branded and generic drug makers,
which forced the large pharmaceutical companies to lower the price
of their AIDS drugs.
• This competition, coupled with pressure from activists, organizations
- such as the Clinton Foundation - and governments of poor countries
with severe AIDS epidemics, dramatically reduced the price of ARVs
for developing countries.
• By the middle of 2001, triple combination therapy was available from
Indian generic manufacturers for as little as $295. By 2007 the most
common antiretroviral combination (3TC/d4T/NVP) available for only
US$87 per patient per year
Graph showing the Prices for ARV’s
Even now prices
2000/2001 have
fallen, ¾s of
people infected with
HIV go without
treatment
Case Study:
• Plus lots of prescription medicines
Including:
Anti Malarias, cancer & heart disease drugs
GlaxoSmithKline
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Mission: to improve the quality of human
life by enabling people to do more, feel
better and live longer.
Research based pharmaceutical company.
Employs over 100,000 people in 117
countries
Every hour Glaxo spends more than
£300,000 to find new medicines.
Only pharmaceutical to tackle the three
‘priority’ diseases identified by the WHO:
HIV/AIDS, tuberculosis, malaria.
In 2006 Glaxo shipped 206 million tablets
of their HIV treatments (Combivir and
Epivir) to developing countries
Many consumer brands are household
names: Ribena, Horlicks, Lucozade,
Aquafresh, Sensodyne, Panadol.
• GSK was 1 of the 39 pharmaceutical
companies involved in the South Africa legal
case.
• GlaxoSmithKline, has now changed its tactics
completely and has granted permission (called
a voluntary licence) to major South African
generics producer Aspen, to share the rights
to their drugs without charge.
• http://www.gsk.com/infocus/world-aidsday.htm video clip/propaganda?!/good PR
Wider reading!!!
• http://www.guardian.co.uk/commentisfree/cif
america/2009/feb/25/glaxo-smith-kline-drugsaid
• http://www.avert.org/generic.htm
• GSK website:
http://www.gsk.com