GlaxoSmithKline to cut medicine prices for poor countries
POSTED February 14, 2009 - 15:16 | POSTED BY Chanchal S. Suri
Last edited by Shikha Patial on February 14, 2009 - 15:58
London, February 14: The CEO of the British based drug giant, GlaxoSmithKline (GSK) revealed that GSK would soon cut the prices of the patented medicines that it sells in the poorest countries.
Andrew Witty, chief executive of the second-largest pharmaceutical company, GlaxoSmithKline (GSK), said that GSK would cut prices in the 50 least developed Sub-Saharan African countries, such as Zambia and Mozambique. The company would charge from the patients no more than 25 percent of average cost that they charge from developed countries. He added that the company would reinvest 20 percent of any profits it makes in the least developed countries in hospitals, clinics and staff.
Witty believes that the pharmaceuticals companies have an obligation to help the poor receive treatment. He also challenged the rival companies to follow their example. Urging other companies to follow, Andrew Witty said that his company would also share knowledge about patented drugs with other researchers.
Mr Witty was quoted as saying, “This is not important from a commercial perspective, but from a global health perspective it is critically important. It is an area where companies like GSK need to do more. If you are one of the companies that has the technologies that help come up with treatments for neglected diseases, you ought to do something about it because, if you don’t, who else is going to do it. It is important that we fulfill that obligation.”
Tido von Schoen-Angerer, director of the Access to Essential Medicines Campaign, welcomed the discounted pricing, but said, “Experience shows in order to make the medicines sufficiently affordable in \ countries, you really need generic competition.”
Rohit Malpani who runs Oxfam's access to medicines campaign said, "He is breaking the mould in validating the concept of patent pools; that has been out there as an idea and no company has done anything about it. It is a big step forward. It is welcome that he is inviting other companies to take this on and have a race to the top instead of a race to the bottom."
