Date:01/05/2007 URL: http://www.thehindubusinessline.com/2007/05/01/stories/2007050104091100.htm

Back Abbott's anti-AIDS drug may become cheaper

P.T. Jyothi Datta

Mumbai April 30 Is a price cut in the offing on generic copies of Abbott's anti-AIDS drug, Kaletra?

Patient advocacy groups seem to think so, as generic versions available in the market are selling at prices matching or higher than those offered by Abbott, the maker and patent-holder of the drug.

A medicine used in the second-line treatment of HIV/AIDS, Kaletra has been at the heart of a pricing and patent related tussle in Thailand, with patient groups and Government urging Abbott to bring down prices.

A couple of weeks back, Abbott dropped prices in Thailand and other low-middle income countries from $2,200 per person a year to $1,000.

A note from Abbott indicates that the reduced price would be applicable to India too. This could possibly turn India's generic advantage on its head, what with Mumbai-based Cipla and Pune-based Emcure offering their generic versions at $1,000-1,600.

Other generic makers of the same drug, including Ranbaxy and Alkem, are also expected to offer the same price range, an industry representative said.

The generic advantage in the pharmaceutical industry is that generic copies of an innovator drug are priced lower than the innovator's price, a health worker said.

Cipla's generic version of Kaletra, which combines lopinavir and ritonavir, is priced at $1,560 per patient per year, according to a note from an advocacy group opposing Abbott's strategy to market the drug. Emcure's generic version, sold under the brand name EMletra, costs an estimated $1,000, said a senior company executive.

However, a pharma industry representative said that it was not the first time that generic price is higher than innovator's price.

A price cut could happen as volumes increase and the generics benefit from the economies of scale, he added.

This was witnessed with AIDS drug Efavirenz, where Merck's price at about 95 cents per tablet was less than Ranbaxy's generic copy of $1.50.

The price of Merck's version at $43 per person per month is close to double the price of Ranbaxy's generic version ($22).

With Abbott having filed for Government approvals to introduce the product in India shortly, this space will be closely watched, especially by patient groups.