ACT UP

AIDS Coalition to Unleash Power

Contact: Gaelle Krikorian and Marie de Cenival, ACT UP Paris

Asia Russell, ACT UP Philadelphia

Durban, South Africa 10 July 2000

This morning, the Gates Foundation announced a $50 million donation, matched by a claimed $50 million in medicine and consultation by Merck Pharmaceuticals. The announcement is to implement a program for access to treatment in Botswana. The claim of $50 million is based on the high prices charged in the US. For the first time, a pharmaceutical company is involving itself directly in ARV distribution in a poor country. In spite of the dire need of HIV treatments, activists, humanitarian organizations, and the governments of developing countries have been critical of the conditions that lie at the core of recent spate of donationa dn price reduction programs.

"At World Health Assembly in Geneva last May, Botswana vigorously campaigned for increased access to generic drugs. The result is that Merch chose Botswana as a beneficiary for this offer," reports Gaelle Krikorian of ACT UP Paris. On Tuesday morning, ACT UP was told by the official in charge of Botswana's national HIV/AIDS program reported that her country may not be able to continue fighting for generic drugs. "The pharmaceutical industry is attempting to deprive developing countries their dcapacity to pursue independent remedies to the high cost of AIDS medicaitons," said Krikorian.

Noting that the details about the drug donation or price reduction programs are not release until months after a media blitz, ACT UP Philadelphia member Paul Davis states that "The pharmaceutical industry is attempting to make soverign nations hostages to charity. The strings attached to these offers can amount to a noose."

ACT UP Paris, Philadelphia, and New York report that the initiative would be welcome, but is a distraction from the fundamental issue of high drug prices.

1. Merck's five-year announcement is similar to those of other major pharmaceutical companies in recent months in that it is a limited donation managed by the company. The issue of local manufacture or importation of generics is avoided. "Merck's offer is partly intended to discourgae countries from pursuing self-sufficient, sustainable policies that would provide access to medicine without reliance on corporate generosity," stated ACT UP Philadelphia's Asia Russell. "Donation programs distract from the refusal of industry to reduce prices to a levgel relevant to the financial capacities of a poor country. Pills cost pennies. It is greed that costs lives."

2. This ediely reported UNAIDS initiative with the "big five" drug companies created hope amongst the global health access movement that the laboratiories would work kointly to bring a common and global answer to the AIDS crisis. However, disjointed and misleading drug company offers splashy press releases, followed by limited programs which serve few," said ACT UP Paris' Krikorian. "The donation announcement is indicative of the failure of the recently announced UNAIDS-pharmaceutical collaboration to address the astronomical prices charged for life extending medicines. Merck has signalled the failure of the UNAIDS attempt to work on access to treaments in terms of prices. UNAIDS Director Peter Piot is the only person in Durban to believe in teh project now."

3. ACtivists state that the donation, while potentially helpful, contains limitations on drug selection that reduce the benefit dramatically: "The $50 million match Merck is touting is based on the astronomical prices charged in the United States. Botswana will be forced to buy Sustiva and Crixivan, instead of vastly less expensive generics versions of these drugs produced in Brazil or elsewhere," stated ACT UP Paris member Marie de Cenival. "Lower priced generic drugs that would treat the largest number of patients and free up more funds to improve health care."

4. Calls to Merck representatives and questions during a press conference confirmed that the Merck announcement contains few details. "Merck is trying to conceal its total absence of a plan and program," said gaelle Krikorian. "Nothing has been determined nor drafted. Merdck is obviously unale to say when treatments will be available."

According to Philadelphia's Asia Russell, "Nobody at the conference seems to be fooled by the pharmaceutical companies' stunts about these restricted or false donation announcements. These announcements actually demonstrate that the pharmaceutical companies are getting panicky in the face of rising demands for generic products."

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