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MEDICINE ACCESS IN GHANA

Updated 12/23/00

GLAXO SMITHKLINE SNATCHES DRUGS
FROM POOR GHANAIANS WITH AIDS

UPDATE:

    HEALTH GAP COALITION CALLS FOR A PHONE, FAX, AND LETTER ZAP OF GLAXO SMITHKLINE OFFICES THE END OF DECEMBER, INTO EARLY JANUARY. See Action Alert

SUMMARY:

    People with AIDS in Ghana are trying desperately to obtain affordable AIDS medication. About 5 per cent of Ghana s adult population is HIV positive. Virtually all can't afford life extending HIV medication, because the drugs are priced out of their reach.

    Mammoth drug maker Glaxo SmithKline is trying desperately to block those efforts -- and they are winning.

    In an effort to increase drug access, a drug distributor in Ghana called Healthcare, Ltd. recently bought low-cost generic AZT+3TC from a generic drug company in India called Cipla, Inc.

    Glaxo owns the patent rights to AZT+3TC (brand name Combivir) in the US, where they charge about $10 per pill. In India, the drug costs about 90 cents per pill. AZT and 3TC are easy and cheap to manufacture, and were brought to market on the US taxpayer s dime.

    Glaxo has already made billions in profit from AZT, 3TC, and Combivir sales.

    Glaxo SmithKline found out Cipla was importing generic medication to Ghana and accused Cipla of violating their Combivir patent rights. Glaxo threatened to take Cipla to court if they continued to import AZT+3TC to Ghana. So Cipla stopped.

    Now Healthcare, Ltd. won't distribute the generic AZT+3TC that already arrived in Ghana, because they are scared Glaxo will threaten them, too. Desperate people with AIDS grow sicker and sicker while boxes of life-extending medication gather dust.

    COMBIVIR PATENTS INVALID IN GHANA

    Glaxo SmithKline is lying about its patent rights to Combivir in Ghana.

    According to a patent official at a West African regional patent organization, Glaxo s Combivir patents are not valid in Ghana (see Schoofs M., Wall Street Journal, 12/1/00).

    Glaxo is deliberately lying in order to scare generic competitors like Cipla from importing generic drugs to third world countries. In any case, Glaxo can afford to wait and take the dispute to court -- whether they end up winning or losing. But people with AIDS can t wait.

    Glaxo is part of the Drug Access Initiative recently announced with UNAIDS Glaxo promises reduced drug prices to poor countries willing to play by their rules. And when Ghana took legally sound actions to increase medication access, Glaxo pulled every dirty trick in the book until Ghana stopped.

ACT NOW: CONTACT GLAXO AND DEMAND:

  • GSK and Jean-Pierre Garier, CEO, to cease and desist all efforts to block the importation of generic Duovir to Ghana.
  • An immediate end to Glaxo's dispute against Cipla over patent rights to Combivir in Ghana.
  • Glaxo must make a public announcement stating that generic distribution of AZT+3TC in Ghana is legal because Glaxo has no enforceable patent rights to Combivir in Ghana.
CONTACT GLAXO:
Glaxo in the U.S.
Robert Ingram, Chief Operating Officer and President, Pharmaceutical Operations
Glaxo SmithKline
5 Moore Drive, Research Triangle Park, North Carolina 27709
Phone: 919-248-2100
Fax: 919-315-0027
Jennifer McMillan Director, Health Care Coalitions and Advocacy Relations
Phone: 919-248-2100
Fax: 919-315-0027
Investor Relations Office
John Del Giorno, VP Government Affairs
Phone: 212-308-1210
Fax: 212-573-3253
Glaxo in the U.K.
Sir Richard Sykes, Chairman, Glaxo SmithKline
Glaxo Wellcome House, Berkeley Avenue, Greenford, Middlesex UB60NN
Tel: 44 (020) 8966 8000
Fax: 44 (020) 8966 8330
Corporate Policy & Public Affairs
Alison D. Edward
Tel: +44 (0)20 8966 8683
Tel: +44 (0)20 8966 8683 *Ext: 7711 8683
Fax: +44 (0)20 8966 5981
e-mail: ade7727@glaxowellcome.co.uk

Glaxo SmithKline FACTS

  • Glaxo SmithKline is the largest pharmaceutical company in the world. Glaxo SmithKline (GSK) will control 7.3 per cent of the global pharmaceutical market when the merger is complete.
  • The combined capitalization of Glaxo Wellcome and SmithKline Beecham--$189 billion--is more than the resources of most third world countries.
  • Cipla was selling $16,000 worth of a generic version of GSK's Combivir at greatly reduced cost to people with AIDS in Ghana. Duovir, Cipla's product, costs $0.90, while the US price for Combivir is $10.00.
  • The entire African continent constitutes only 1.3% of the multi billion dollar global pharmaceutical market
  • In 2000, the US market alone for Combivir was worth $478.4 million.
  • Ghana's Gross Domestic Product is about $7 million.
  • GSK's Combivir is AZT and 3TC (Epivir) combined in one pill. AZT was brought to market solely with taxpayer dollars: the AIDS drug was developed by the Michigan Cancer Foundation using a National Institutes of Health (NIH) grant. Despite exploitation of public funding, GSK has long enjoyed a monopoly on AZT. Combivir will extend that monopoly into 2016.

BACKGROUND

    Glaxo Smith-Kline (GSK) makes many drugs that treat HIV and its complications and is one of the most vocal drug companies involved in the much-hyped "Big Five" HIV medication price cut deal announced by UNAIDS in May 2000.

    But what was GSK's first action regarding access to medication in Africa after their promise in May to make AIDS medication more accessible to the poor of the world? Stealing affordable drugs from dying Africans. GSK threatened legal action against a generic producer, Cipla (Mubai, India) in early August 2000. Cipla was selling $16,000 worth of a generic version of GSK's Combivir at greatly reduced cost to people with AIDS in Ghana. Duovir, Cipla's product, costs $0.90, while the US price for Combivir is $10.00.

    GSK claims that Cipla's sales of the generic drug to Ghana violated GSK's patent rights to Combivir in Ghana. But because GSK filed for several patents relevant to Combivir before Ghanaian patent law recognized patents on medication, it is likely that GSK's claim to patent rights to Combivir are completely invalid.

    Whether or not GSK's patent claims are valid, the entire African continent constitutes only 1.3% of the multi billion dollar global pharmaceutical market. GSK's actions against desperate countries must be stopped.

RESOURCES

  • December 1, 2000 Health GAP press statement: Glaxo SmithKline Profiting from Barriers to Essential Medication in Ghana. Press Statement | Fact Sheet (pdf).

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