ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen

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ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
UNTANGLING THE WEB OF

ANTIRETROVIRAL
PRICE REDUCTIONS
18th Edition – July 2016

www.msfaccess.org
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
PREFACE
    In this report, we provide an update on the key facets of HIV treatment access. It includes
    the latest HIV treatment guidelines from World Health Organization (WHO), an overview on
    pricing for first-line, second-line, and salvage regimens, and a summary of the opportunities
    for – and threats to – expanding access to affordable antiretroviral therapy (ART). There is a
    table with information on ARVs, including quality assurance, manufacturers and pricing on
    pages 19 to 21.

    Detailed information on key antiretroviral drugs
    and fixed-dose combinations is available at:

            www.msfaccess.org/utw2016

    THE MSF ACCESS CAMPAIGN
    In 1999, on the heels of Médecins Sans Frontières (MSF) being awarded the Nobel Peace Prize – and
    largely in response to the inequalities surrounding access to HIV/AIDS treatment between rich and
    poor countries – MSF launched the Campaign for Access to Essential Medicines. Its sole purpose
    has been to push for access to, and the development of, life-saving and life-prolonging medicines,
    diagnostics and vaccines for patients in MSF programmes and beyond.

            www.msfaccess.org

    MSF AND HIV
    Médecins Sans Frontières (MSF) began providing antiretroviral therapy to a small number of
    people living with HIV/AIDS in 2000 in projects in Thailand, South Africa and Cameroon.
    At the time, treatment for one person for one year cost more than US$10,000. With increased
    availability of low-cost, quality antiretroviral drugs (ARVs), MSF provides antiretroviral treatment
    to 247,000 people in 18 countries, implements treatment strategies to reach more people earlier
    in their disease progression, and places people living with HIV at the centre of their care.

    Over the past 16 years, the MSF Access Campaign has been monitoring the barriers to
    availability and affordability of life-saving ARVs and appropriate formulations, including patent
    monopolies, prices and lack of generic competition through Untangling the Web and pushing
    for the uptake of policies that promote access to affordable quality medicines. Due primarily to
    generic competition, the price of ARVs has dropped by more than 99% over the last 15 years,
    but the price of the newest drugs, already needed by some people in MSF projects, is prohibitive
    and a source of great concern both for MSF and national treatment programmes.

    PATENT OPPOSITION DATABASE
    The Patent Opposition Database was launched by the MSF Access Campaign in October 2012 as an
    online space where civil society can share the resources and tools needed to oppose patents on
    medicines. The database gathers contributions from around the world. It allows documents to be
    shared, arguments to be replicated, and new alliances to be forged, with the aim of successfully
    opposing patents and ultimately improving access to medicines in developing countries. To find
    out more about patents that block access to essential medicines and what you can do to challenge
    them, or to contribute by sharing resources, visit:

            www.patentoppositions.org

Médecins Sans Frontières | July 2016
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
TABLE OF CONTENTS

                                                                                    TABLE OF CONTENTS
             2	STATE OF HIV TREATMENT ACCESS
                Speed up treatment scale-up in Western and Central Africa

             4	OPTIMISING HIV TREATMENT

             7	PRICING
                High antiretroviral prices in middle- and high-income countries

             11	REGISTRATION
                 Lack of access to dolutegravir in India

             12	PATENT OPPOSITIONS AND PATENT LAW REFORM
                 Patent oppositions for hepatitis C
                 Evergreening

             14	TRADE AGREEMENTS
                 LDC exemption from pharmaceutical IP extended
                 Colombia: Compulsory licence threat invites US pressure

             16	STOCKOUTS
                 Market shaping institutions – what needs to happen
                 Update on the Medicines Patent Pool’s new licences

             18      CONCLUSION

             19      ANNEX: SUMMARY TABLE OF ALL PRICES

             22      REFERENCES

             24      GLOSSARY AND ABBREVIATIONS

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                       1
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
STATE OF HIV
STATE OF HIV TREATMENT ACCESS

                                            TREATMENT ACCESS
                                   In 2000, when the International AIDS Conference was last held in Durban, South Africa, a basic
                                   antiretroviral (ARV) regimen cost over US$10,000 per person per year (pppy), multilateral programmes
                                   funding the fight against HIV, TB, and malaria did not exist, and many donors – such as the US
                                   government – had yet to provide a single dollar for antiretroviral treatment in resource-limited countries.

                                Now, in 2016, 17 million HIV-positive           for 2020, referred to as ‘90-90-90’.3
                                people are receiving lifesaving                 To meet these targets, the number of                 THE 2020 UNAIDS
                                antiretroviral therapy (ART),1 and the          people on treatment will need to more
                                lowest price for a generic, World Health        than double again, since nearly 20
                                                                                                                                     TARGET: 90-90-90
                                Organization (WHO)-recommended                  million HIV-positive people are newly                By 2020, 90% of all
                                first-line regimen is $100 pppy.                eligible for ART under the new ‘treat-               HIV-positive people will be
                                                                                all’ recommendation.1                                aware of their status; 90%
                                In 2015, the number of people starting
                                HIV treatment surpassed the number              At the UN High Level Meeting on                      of all people diagnosed
                                of new infections in Africa for the             HIV in June 2016, governments                        with HIV will have access to
                                first time. Since 2010, the number of           agreed on a global target: reaching                  sustained ART; and 90% of
                                people receiving ART has more than              30 million people with treatment                     people on ART – or 73% of
                                doubled.1,2 The push to continue                by 2020. Reaching this goal will                     all HIV-positive people – will
                                ARV scale-up has gained momentum                require increased and sustained                      achieve viral suppression.3
                                around the UNAIDS global targets                support from donors.

                                                                                                                                                                      © Isabel Corthier

                                  Tsandia receives her antiretroviral medicines at the HIV department of the Arua Regional hospital in Uganda.

        2                       Médecins Sans Frontières | July 2016
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
STATE OF HIV TREATMENT ACCESS
GRAPH 1: GENERIC COMPETITION AS A CATALYST FOR PRICE REDUCTION FOR A FIRST-LINE REGIMEN

                                                                                                                           Originator products
                                                                                                                           Generic products
                              12000

                                      10439
                              10000
    US$ per person per year

                              8000

                              6000

                              4000

                                       2767
                              2000                                                                                                        549

                                 0                                                                                                        132
                                      June 00   Sept 01      June 02       June 03        Dec 03         Apr 04        June 05           June 06

Since 2000, MSF has been providing HIV care and treatment
to people in developing countries. Today, MSF provides HIV
treatment for nearly 250,000 people.

   SPEED UP TREATMENT SCALE-UP IN WESTERN AND CENTRAL AFRICA

   Although HIV prevalence is lower in                    worsened by the Ebola outbreak -             tests, drug stockouts, out-of-pocket
   Western and Central Africa than in                     add to barriers that include limited         fees for healthcare, and lack of
   Southern Africa, over a quarter of                     access to diagnostic and monitoring          decentralised treatment.4
   all AIDS-related deaths occur in the
   region, including 40% of all deaths
   among children.4

   In Central African Republic, HIV
   prevalence is 5%, but HIV accounts
   for 84% of hospital-based deaths
   where MSF works. In Democratic
   Republic of the Congo, three out
   of four HIV-positive people who
   present to the hospital where MSF
   works are too sick to save.

   In 2015, only 1.8 million
                                                                                                                                                © Sam Phelps

   people (28%) of the region’s
   6.5 million HIV-positive people
   were accessing ART.1 Political
   instability, inadequate funding and
                                                          Mohamed (left) is tested for HIV at an MSF mobile clinic in Conakry, Guinea.
   weak healthcare systems - some

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ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
OPTIMISING HIV TREATMENT
OPTIMISING HIV TREATMENT

                           COUNTRIES SHOULD IMPLEMENT WHO GUIDELINES
                           Immediate treatment and a steady            WHO has recommended immediate                   of care that put the patient at the
                           supply of affordable medicines are          and lifelong ART for everyone with              centre of their treatment.10
                           essential to curbing the HIV epidemic.      HIV: all infants, children, adolescents,
                                                                                                                       Countries should implement the WHO
                           ART lowers the risk of serious illness      and adults, including pregnant and
                                                                                                                       recommendations, including ‘test and
                           and death, reduces the risk of              breastfeeding women, regardless of
                                                                                                                       start’, routine viral load monitoring
                           developing tuberculosis (TB) by             CD4 cell count or disease stage.9
                                                                                                                       [see below], better drugs (new
                           65%, and reduces HIV transmission
                                                                       In June 2016, WHO issued new HIV                ARVs and once-daily, fixed-dose
                           by 96%.5,6,7,8
                                                                       treatment guidelines, including                 combinations), adherence support, and
                           In light of the individual and              recommendations for new ARV                     differentiated models of care to facilitate
                           community benefits of HIV treatment,        regimens and differentiated models              rapid scale-up and quality patient care.10

                           ROUTINE VIRAL LOAD MONITORING
                           Access to viral load testing – the gold
                           standard for HIV treatment monitoring
                           – is essential to achieving the 90-90-90
                           targets. For infants, an early diagnosis
                           can be life-saving – and requires
                           viral load testing. In 2016, WHO
                           recommended point-of-care viral load
                           testing for HIV-exposed infants.10

                           Since 2013, WHO has recommended
                           routine viral load monitoring for
                           diagnosing HIV treatment failure; the
                           2015 guidelines recommend viral load
                           monitoring – now with dried blood spot
                           testing – at six and 12 months after
                           starting ART. For stable patients, viral
                           load monitoring is recommended once
                           every year thereafter instead of CD4 cell
                           count monitoring.9,10

                           As tests have become more affordable
                           and rollout less complex, more
                           countries have adopted routine viral
                           load as part of national policy. However,
                           implementation still lags far behind;
                           a 2014 WHO study of 122 low- and
                           middle-income countries found that
                           only 22% of people on ART received
                           viral load monitoring.11

                           MSF began implementing viral load
                           testing in 2012. In Lesotho, Malawi,
                           Mozambique, Swaziland, Uganda,
                           and Zimbabwe, risk factors for having
                           a detectable viral load have been
                                                                         © Isabel Corthier

                           identified, leading to interventions
                           including a child-friendly clinic,
                           community ART groups, and enhanced
                           adherence counselling. Routine viral
                           load testing has triggered a switch to
                           second-line treatment and enhanced
                                                                         People wait to have their blood tested to measure their viral load at the HIV department
                           adherence counselling in 10% to 68%
                                                                         of Arua Regional Hospital in Uganda.
                           of patients. 12

      4                    Médecins Sans Frontières | July 2016
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
OPTIMISING HIV TREATMENT
IMPROVING FIRST-LINE TREATMENT
                                                                                                             The 2015 WHO HIV treatment
                                                                                                             guidelines added recommendations
                                                                                                             for two alternative first-line ARVs:
                                                                                                             dolutegravir (DTG), a well-tolerated
                                                                                                             integrase inhibitor that rapidly lowers
                                                                                                             HIV viral load and is robust, with very
                                                                                                             few documented cases of resistance,13
                                                                                                             and a lower, equally effective dose of
                                                                                                             efavirenz (EFV; 400mg vs. 600mg)9

                                                                                     © Ron Haviv/VII Photo
                                                                                                             that is better tolerated than the higher
                                                                                                             dose.14 Before these ARVs become
                                                                                                             part of a preferred first-line regimen,
                                                                                                             additional clinical data on their safety
                                                                                                             and efficacy during TB treatment,
                                                                                                             pregnancy, and breast-feeding are
  An MSF outreach worker measures out antiretroviral medication during a home visit                          needed;9,15 these studies are planned
  in Dawei, in southeastern Myanmar.
                                                                                                             or underway.

BETTER SECOND-LINE TREATMENT
As access to viral load monitoring
increases, more people in need
of second-line treatment will be
identified. The WHO treatment
guidelines have added two alternative
recommendations for second-line ART:
a heat-stable, fixed-dose combination
(FDC) of darunavir/ritonavir (DRV/r)
and a two-drug regimen of raltegravir
(RAL; an integrase inhibitor) with
lopinavir/ritonavir (LPV/r).10

DRV is a boosted protease inhibitor
(PI) with fewer side effects than the
                                               © Julie Remy

other second-line protease inhibitors
(although it cannot be used during
rifampicin-based TB treatment).16,17,18
But access to DRV/r is limited; there
is no quality-assured heat-stable              Loved Mupandanana is HIV positive, and her first-line treatment for HIV seems to be
FDC on the market, and the current             failing. At Gombe clinic, in Manicaland Province in Zimbabwe, she is receiving counselling
                                               about the need to move on to second-line treatment.
price of generic DRV alone is at least
three times more than other protease
inhibitors, making it costly for wide-
spread use.
                                             In 2015, MSF provided second-line
                                             HIV treatment for 10,200 people.

                                                                                                                                Continued overleaf

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OPTIMISING HIV TREATMENT

                             Optimising HIV treatment continued

                           THE ARV PIPELINE FOR ADULTS
                           The ARV pipeline includes new drug          three TAF-based FDCs (in November              improve adherence and significantly
                           formulations and classes. Tenofovir         2015, March 2016 and April 2016).              reduce the cost of HIV treatment;
                           alafenamide (TAF), a new prodrug of         Stand-alone TAF has been approved              interim results from a trial of a long-
                           tenofovir disoproxil fumarate (TDF),        in Europe (and filed in the US) for            acting injectable combination (rilpivirine
                           is equally effective as the currently       hepatitis B treatment only. If Gilead,         and cabotegravir) are promising,
                           available version, at one-tenth of the      the company marketing TAF, does not            although an interaction between
                           dose. TAF is likely to be safer, and        register the drug as a single ARV for          cabotegravir and rifampicin requires
                           should be significantly less expensive      use in HIV, generic manufacturers may          further study.20,21,22,23
                           to produce than TDF,19 but data on          face complications and long delays
                                                                                                                      New ARV classes include attachment
                           drug interactions between TAF and TB        in registering TAF-containing FDCs in
                                                                                                                      and maturation inhibitors; there are also
                           treatment are needed.                       other countries.
                                                                                                                      new versions of integrase inhibitors and
                           The United States Food and Drug             Long-acting, injectable ARVs with              non-nucleoside reverse transcriptase
                           Administration (USFDA) has approved         monthly or bi-monthly dosing could             inhibitors (NNRTI) in development.

                           THE ARV PIPELINE FOR CHILDREN
                           Only 49% of the world’s HIV-positive        children difficult. The price of the pellets
                           children had access to treatment in         needs to be reduced so it is at least          In 2015, MSF
                           2015.24 Without treatment, over half        on par with the syrup, to encourage
                           of all HIV-positive children die before     countries to adopt them.
                                                                                                                      supported
                           their second birthday;25 treating infants                                                  treatment for
                                                                       The Drugs for Neglected Diseases
                           when they are less than 12 weeks old                                                       6,800 HIV-positive
                                                                       initiative (DNDi) LIVING study is
                           lowers mortality by 75%.26
                                                                       looking at the safety, effectiveness
                                                                                                                      pregnant women,
                           Research and development of                 and acceptability of LPV/r pellet-based        and post-exposure
                           paediatric ARVs and FDCs has lagged         therapy in infants (>four weeks old)           treatment for
                           far behind adult treatment, which has       and children, with enrolment having            4,400 babies.
                           severely limited treatment options for      begun in Kenya.30
                           HIV-positive infants and children.

                           There is a new pellet formulation
                           of LPV/r, which is part of the WHO-
                           recommended first-line regimen for
                           children under three years old.10
                           In May 2015, the USFDA granted
                           tentative approval for LPV/r pellets
                           for children who weigh >5 kg and are
                           over 14 days old.27,28 This formulation
                           of LPV/r is available to a limited group
                           of low- and middle-income countries
                           through a Medicines Patent Pool (MPP)
                           voluntary licence (VL), although one
                                                                         © Sydelle WIllow Smith

                           year after stringent regulatory authority
                           (SRA) approval, it has not yet been
                           made commercially available.

                           Pellets could replace LPV/r syrup, which
                           contains 40% alcohol and propylene
                           glycol, requires refrigeration, and has
                           been described as tasting “horrible”29 –      Jennipher Mwamvera is a mother of four and a patient in the prevention-of-mother-to-
                                                                         child transmission of HIV (PMTCT) program in Thyolo, Malawi.
                           all of which have made treating young

      6                    Médecins Sans Frontières | July 2016
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
PRICING

                                                                                                                                                                     PRICING
         Affordable generic ARVs have made HIV treatment scale-up possible in countries that can access them.
         Robust competition between multiple generics producers has dramatically lowered the price of first-line
         antiretroviral therapy over the last decade-and-a-half.

FIRST-LINE REGIMENS
Since 2014, there has been a 30%                                    (TDF/FTC/EFV) can be as low as                        Aurobindo’s generic version of
reduction in the price for generic                                  $100 pppy, down from $143 pppy in                     dolutegravir will have a price of
first-line treatment.* If countries are                             2014. Prices for first-line treatment                 $44 pppy,32 which is on par with
able to import and use generics,                                    are unlikely to decrease further, since               the price of efavirenz 600mg.
the price for the fixed-dose of the                                 they are now close to the minimum                     A fixed-dose combination of DTG
WHO-recommended combination                                         sustainable production price,                         with TDF/XTC should be available
of tenofovir/emtricitabine/efavirenz                                according to experts.31                               by the end of 2017.

                                                                                                                                                Continued overleaf

GRAPH 2: THE PRICES OF DIFFERENT FIRST-LINE REGIMENS TODAY

                               1200
                                                                                                                                                     $1033
                               1000
     US$ per person per year

                               800

                                                                                                                                        $ 613
                               600

                               400

                               200                                      $164                             $106            $100
                                          $94             $124                           $66

                                 0
                                         Lowest           Lowest        Lowest           Lowest          Lowest          Lowest         Originator    Originator
                                       generic price    generic price generic price    generic price   generic price   generic price     price for     price for
                                      AZT/3TC/NVP      TDF/3TC + NVP AZT/3TC + EFV    TDF/3TC + EFV    TDF/3TC/EFV     TDF/FTC/EFV        Cat.1         Cat.2
                                                                                                                                       TDF/FTC/EFV   TDF/FTC/EFV

*	Price reductions may be due in part to currency fluctuations.

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                                                     7
ANTIRETROVIRAL PRICE REDUCTIONS - UNTANGLING THE WEB OF - Ärzte ohne Grenzen
PRICING

              Pricing continued

          GRAPH 3: THE EVOLUTION IN PRICE OF DIFFERENT FIRST-LINE REGIMENS

                                                                                                                   TDF/FTC/EFV (1 pill/once a day)
                                                                                                                   TDF/3TC/EFV (1 pill/once a day)
                                                                                                                   AZT/3TC + EFV (1 pill/twice a day + 1 pill/once a day)

                                        600

                                        500
                                               487
              US$ per person per year

                                               426
                                        400    410

                                        300

                                        200
                                                                                                                                                                                         164
                                                                                                                                                                                         106
                                        100                                                                                                                                              100

                                         0
                                              June 07    June 08           Dec 09            June 10           June 11           June 12           June 13           June 14           June 16

                 HIGH ANTIRETROVIRAL PRICES IN MIDDLE- AND
                 HIGH-INCOME COUNTRIES
                 According to UNAIDS, 70% of all                              not included in voluntary licensing                           High-income countries such as the
                 HIV-positive people will be living in                        agreements, and/or have not used                              US are struggling with spiralling
                 middle-income countries by 2020.33                           TRIPS flexibilities such as compulsory                        costs of patented medicines,
                                                                              licences.* Instead, they must pay                             including ARVs. In the US, the
                 Several ARVs are still on patent in
                                                                              high prices to originator companies                           combination of TDF/FTC/EFV (sold
                 middle-income countries. Some
                                                                              for patented drugs on a case-by-                              under the brand name Atripla) costs
                 lower- and upper-middle-income
                                                                              case basis or under ‘tiered pricing’                          nearly $30,000 pppy35 versus $100
                 countries where patent barriers on
                                                                              schemes that are not based on a                               pppy for Indian generic versions.
                 key ARVs remain cannot produce or
                 buy generic ARVs, because they are                           realistic concept of affordability.34

          *	The World Trade Organization’s Trade-Related Aspects of Intellectual Property (TRIPS) Agreement can and should be interpreted in light of the goal “to promote access to medicines”. Legal
             safeguards include (but are not limited to) enabling networks of people living with HIV/AIDS to challenge patent claims before and/or after they are granted; the right to examine patent
             claims strictly and reject new use and/or new forms of known medicines; the right to register generic versions of patented medicines; the right to issue compulsory licences (CLs; these allow
             countries to import or locally produce generic versions of patented medicines without the patent holder’s consent); and the right to import and resell lower-priced medicines from other
             countries instead of paying higher prices for them – also without consent from the patent holder (called parallel importing).

 8        Médecins Sans Frontières | July 2016
PRICING
SECOND-LINE REGIMENS
Boosted protease inhibitors are the                             Although LPV/r must be taken twice                              Prices for boosted protease inhibitors
backbone of second-line regimens.                               a day, it can be dose-adjusted for use                          are especially high in middle-income
The lowest-priced generic second-                               with rifampicin-based TB treatment.                             countries, since many of them have
line regimen, zidovudine/lamivudine                             LPV/r is still more expensive than                              patent barriers and are excluded from
(AZT/3TC) and atazanavir/r (ATV/r), is                          ATV/r, at $243 pppy versus $213                                 voluntary licensing agreements. In
now priced at $286 pppy. Since 2014,                                                                                            its designated Category 2 countries,*
                                                                pppy [see graph 4]. The price of
the price has dropped by 11%, from                                                                                              AbbVie charges higher prices for LPV/r
                                                                generic LPV/r is 5% higher than
$322 pppy.                                                                                                                      than in least-developed countries
                                                                the originator product, because the                             (LDCs): $740 pppy (which has not
Switching to second-line therapy                                originator company, AbbVie, has been                            changed since 2012), compared to
nearly triples the price of treatment                           consistently undercutting generic                               $231 pppy in LDCs [see graph 4]. In
[see graph 5]. Currently, there                                 competition with slightly lower prices.                         Malaysia, prices for LPV/r were quoted
are two WHO-preferred boosted                                                                                                   above $3,500 pppy in 2014.36 The
protease inhibitors for second-                                 For several of the newer second-line
                                                                                                                                originator price from Bristol-Myers
line regimens, ATV/r and LPV/r;                                 options, current demand is low. The
                                                                                                                                Squibb (BMS) for atazanavir– which
one alternative boosted protease                                price of generic versions has not yet                           must be used with ritonavir (RTV) – is
inhibitor, darunavir+r (DRV+r); and                             come down, and only a few                                       $816 pppy; AbbVie’s originator price
an alternative, twice-daily two-ARV                             producers have entered the market.                              for RTV is set on a “case-by-case” basis.
regimen, the integrase inhibitor                                DRV is much more expensive than
raltegravir (RAL) plus LPV/r.10                                                                                                 The lowest originator price for RAL is
                                                                ATV/r or LVP/r, and it is not available
                                                                                                                                $675 pppy; the lowest-price generic
                                                                as a fixed-dose combination with
A generic, fixed-dose, heat-stable                                                                                              version is $973 pppy [see graph 6].
                                                                ritonavir (RTV or r). Darunavir is
formulation of ATV/r is available. It has                                                                                       Currently, RAL is taken twice daily,
fewer side effects than LPV/r, although                         available from the originator for
                                                                                                                                however, Merck plans to submit
it cannot be used during rifampicin-                            $663 pppy; generic versions are                                 data to the USFDA and the European
based TB treatment. Because of supply                           $1217 pppy, since the current low                               Medicines Agency (EMA) to seek
problems with LPV/r, an increase                                demand prevents companies from                                  approval for once-daily RAL.37 RAL
in demand for ATV/r is expected,                                being motivated to commercialise it                             can be dose-adjusted for use during
hopefully leading to lower prices.                              in low- and middle-income countries.                            rifampicin-based TB treatment.38

GRAPH 4: THE EVOLUTION IN PRICE OF BOOSTED PROTEASE INHIBITORS FOR SECOND-LINE REGIMENS

                                                                               Lowest generic ATV/r                                    Originator price for Cat. 1 LPV/r
                                                                               Lowest generic LPV/r                                    Originator Price for Cat. 2 LPV/r

                               1200

                                      1034
                               1000   1000
     US$ per person per year

                               800
                                                                                                                                                                           740

                               600
                                      500
                               400

                                                                                                             304                                                           243
                                                                                                                                                                           231
                               200                                                                                                                                         213

                                 0
                                      2007    2008           2009            2010           2011            2012            2013           2014            2015            2016

*	Albania, Armenia, Azerbaijan, Belarus, Bolivia, Bosnia and Herzegovina, China, Colombia, Dominican Republic, Ecuador, El Salvador, Fiji, Georgia, Guatemala, Guyana, Honduras, India,
   Indonesia, Jamaica, Jordan, Kazakhstan, Kyrgyzstan, Macedonia, Marshall Islands, Micronesia, Moldova, Mongolia, Montenegro, Nicaragua, Pakistan, Papua New Guinea, Paraguay, Peru,
   Philippines, Serbia, Sri Lanka, Suriname, Syria, Tajikistan, Thailand, Tonga, Turkmenistan, Ukraine, Uzbekistan, Viet Nam.

                                                                                                                                                            Continued overleaf

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                                                                           9
PRICING

             Pricing continued

          SALVAGE REGIMENS
          There is an urgent need for more                                 + ETV), in countries that fall into the      $1,217; this does not include the ritonavir
          affordable third-line, or salvage regimens                       select group eligible for access pricing     it must be used with. At the same time,
          for people that have acquired resistance                         from originators (but many countries         the access price from the originator has
          to first- and second-line treatment.                             are paying much more). This represents       dropped by 17%, from $810 to $675.
          Low volume and high prices from both                             nearly an 18-fold increase over the lowest   A quality-assured generic RAL is priced at
          originator and generic companies keep                            first-line prices, and nearly a seven-fold   $973 pppy, but it is still more expensive
          these medicines out of reach.                                    increase over the most affordable
                                                                                                                        than the originator version, which has
                                                                           second-line regimen [see graph 5].
          The lowest price for a salvage regimen                                                                        stayed at $675 since 2011. The originator
          today is $1,859 pppy, for darunavir+r,                           Since 2014, the price of generic DRV         price for ETV has stayed at $438 since
          raltegravir and etravirine (DRV+ r + RAL                         has increased by 10%, from $1,095 to         2011 [see graph 6].

          GRAPH 5: PRICE COMPARISONS OF FIRST-LINE, SECOND-LINE AND POSSIBLE THIRD-LINE
          TREATMENT REGIMENS

                                         2000

                                                                                                                                        $1,859
                                         1500
                                                                x 17.4
               US$ per person per year

                                                                                                         x 6.5

                                         1000

                                                                                x 2.7

                                          500

                                                          $106
                                                                                                   $286
                                            0
                                                    Lowest generic price                     Lowest generic price                  RAL+DRV+r+ETV
                                                        TDF/3TC/EFV                            AZT/3TC+ATV/r
                                                     First-line regimen                     Second-line regimen                   Third-line regimen

          GRAPH 6: PRICES FOR THIRD-LINE ARVS

                                                                                  DRV 600 mg originator price                   RAL 400 mg originator price
                                                                                  DRV 600 mg generic price                      RAL 400 mg generic price
                                                                                  ETV 100 mg originator price
                                         2000

                                         1750                                                                1752
             US$ per person per year

                                         1500

                                         1250                                                                                                     1217
                                                                     1095
                                         1000                                                                                                      973
                                                 913
                                                                                           810
                                         750                                                                                                       675
                                                 675                                                                                               663
                                         500
                                                                                                                                                   438
                                         250

                                           0
                                                June 11             June 12              June 13            June 14           June 15            June 16

10        Médecins Sans Frontières | July 2016
REGISTRATION

                                                                                                                                                                                                REGISTRATION
     In many countries, marketing authorisation for promising new ARVs can take several years; this type
     of regulatory lag forces people living with HIV/AIDS to wait for life-saving medicines. National Drug
     Regulatory Authorities (NDRAs) do not always have the resources to ensure timely registration of more
     affordable generic versions of new ARVs, and/or fail to prioritise them.39

Pharmaceutical companies don’t                                    Collaborative or regional registration                            new drugs for neglected diseases, ARVs
often prioritise registration in low-                             processes have reduced the time to                                for paediatrics, and salvage regimens.
and middle-income countries. Some                                 registration for some products in                                 In addition, the Indian NDRA should
originator companies shift the                                    some participating countries. These                               prioritise new ARVs, FDCs, and child-
responsibility for filing registration                            collaborations should be considered                               friendly formulations, taking note of,
dossiers in high-burden developing                                by national regulatory authorities to                             and relying on WHO guidelines and/or
countries to generics companies that                              reduce the considerable workload                                  Expression of Interest from the
have signed voluntary licences.                                   associated with reviewing registration                            WHO prequalification programme.*
                                                                  dossiers. For example, in East Africa,
In some countries, generics companies                                                                                               Another delay is the WHO
                                                                  a pilot of the African Medicines
are able to register generic versions                                                                                               prequalification programme, which has
                                                                  Registration Harmonisation Initiative
of medicines, but in others, when                                                                                                   been essential for reviewing the quality,
                                                                  has reduced the time to registration
originators don’t register their ARVs                                                                                               safety, and efficacy of generic ARVs that
                                                                  by 50% in Burundi, Kenya, Rwanda,
before generics companies do, it may                                                                                                aren’t always reviewed or approved by
                                                                  Uganda, and Zanzibar.39
cause significant delays, or become an                                                                                              a stringent regulatory authority (SRA).
absolute barrier to treatment access.                             India’s lack of intellectual property                             In 2013, the median wait for WHO
                                                                  (IP) barriers and historically efficient                          prequalification was 15.1 months.39
Countries have different regulatory                               regulatory pathway made it possible
pathways, priorities, rules,                                      for generics companies to produce and
requirements, legal frameworks,                                   register more affordable medicines for
capacities, and timelines, and some                               developing countries. But availability                            97% of the
do not have NDRAs. There is no                                    of new quality-assured generic ARVs                               medicines MSF uses
‘essential documentation package’
to streamline the registration process
                                                                  and FDCs from India is starting to be                             to treat people with
                                                                  delayed. This is partly because India’s
across all NDRAs in developing                                    criteria to waive phase III clinical trials                       HIV are generics
countries, and country-level                                      are restrictive in certain cases. These                           made in India.
bureaucracy can delay registration.                               criteria need to be expanded to include

     BARRIERS TO UNIVERSAL ACCESS TO GENERIC
     DOLUTEGRAVIR FROM INDIA
     The pharmaceutical company ViiV has granted voluntary                                         for registration in India. As a result, the responsibility
     licences (VLs) for the integrase inhibitor dolutegravir                                       for registration is now with Indian producers that have
     (DTG) to several Indian generic companies through                                             developed generic dolutegravir. They will need to do
     the Medicines Patent Pool (MPP). The VLs will not                                             local clinical trials, as per the Indian NDRA requirements
     result in universal access to the drug, since a number of                                     for new drugs, which will lead to a significant delay
     high-burden countries are excluded from the territories                                       in the availability of affordable generics across the
     that can import the generic version from India.                                               developing world. In the meantime, patients in India
     In India, generic DTG will only be available on the                                           who have exhausted other treatment options are left
     public market or to non-governmental providers,                                               without access to DTG, since ViiV has been dragging its
     leaving a number of patients with drug resistance                                             feet to provide the medicine via compassionate use.
     who need immediate access without any source                                                  To ensure open generic competition in the future,
     from Indian pharmacies.
                                                                                                   a patent opposition for DTG has been filed in India,
     Although DTG has been registered in many other                                                by and on behalf of people living with HIV, and
     countries, ViiV, the originator company, has not filed                                        supported by MSF.

*	These include: dolutegravir (DTG) singles and FDCs, including tenofovir/lamivudine/dolutegravir; a low-dose (400mg) efavirenz FDC and heat-stable darunavir/ritonavir Priority pediatric
   formulations for HIV include: lopinavir/ritonavir pellets or sachets; abacavir/lamivudine/lopinavir/ritonavir (ABC/3TC/LPV/r) zidovudine/lamivudine/lopinavir/r (AZT/3TC/LPV/r) pellets or
   sachets for children over three years old and lamivudine/abacavir/efavirenz (3TC/ABC/EFV 75/150/150mg) dispersible tablets for children ages 3-10 years.

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                                                                               11
PATENT OPPOSITIONS
PATENT OPPOSITIONS AND PATENT LAW REFORM

                                                       AND PATENT LAW REFORM
                                           INDIA, THE ‘PHARMACY OF THE DEVELOPING WORLD’, IS UNDER
                                           PRESSURE TO DROP ITS PUBLIC HEALTH SAFEGUARDS
                                           Indian generics comprise 76% of            of Intellectual Property Rights [TRIPS]).    pressure – led by the multinational
                                           the ARVs used in low- and middle-          India’s national patent laws include         pharmaceutical lobby – to change its
                                           income countries and more than             public health safeguards such as             national intellectual property laws and
                                           97% of those used by MSF in its            stringent patentability criteria, and the    policies, or sign free trade agreements
                                           treatment programmes.31,44 India           opportunity to file legal challenges to      that will dismantle them. Over the last
                                           encouraged generic competition for         patents before and/or after they are         two years, pharmaceutical industry-
                                           decades, since it did not introduce        granted (called pre-and post-grant           led pressure from the US has been
                                                                                      patent oppositions).
                                           patents for pharmaceuticals until                                                       escalating. India must reject the
                                           2005 (when it had to comply with           India has fought off numerous                demands to grant patents more easily,
                                           international trade rules under the        challenges to its public health              as well as TRIPS-plus rules that the
                                           World Trade Organization [WTO]             safeguards, but it has been under            United States is trying to force upon
                                           Agreement on Trade-related Aspects         excessive external and domestic              India’s Ministry of Commerce.

                                              PATENT OPPOSITIONS FOR HEPATITIS C
                                              Patent oppositions have been used when patent                 has applied for WHO prequalification for their generic
                                              claims do not meet national patentability criteria,           version of the drug.
                                              and when a patent directly blocks or delays access
                                                                                                            In India, one critical sofosbuvir patent has been
                                              to essential medicines.
                                                                                                            recently granted, reversing its prior rejection in 2015.
                                              Worldwide, an estimated 150 million people                    This decision is now under appeal. If upheld, the
                                              have chronic hepatitis C virus infection; without             patent will block additional competition from the
                                              treatment, they are at risk of developing liver               Indian generics companies that do not want to sign
                                              failure and liver cancer.45                                   a voluntary licence with Gilead, leaving them unable
                                              Hepatitis C can be cured with a few months’ treatment         to supply sofosbuvir to millions of people in India
                                              using oral drugs, called direct-acting antivirals (DAAs).     and other middle-income countries. In addition, this
                                              In 2013, the price of the first DAA on the market,            decision would allow Gilead to disrupt or stop exports
                                              sofosbuvir, sent shock waves throughout the world.            of the raw materials from India that are used to make
                                              Although it can be mass-produced for less than                sofosbuvir’s key active pharmaceutical ingredient (API).
                                              $1 per pill,46 sofosbuvir’s launch price was $1,000           This will make it difficult for the generics companies in
                                              per pill in the US.                                           Egypt, Bangladesh, Pakistan and Latin America that are
                                              Gilead’s patent on sofosbuvir has been opposed –              producing sofosbuvir without a patent in force – and
                                              and rejected – in some countries. The patent on the           without a licence agreement with Gilead – to continue
                                              pro-drug form of sofosbuvir was rejected in China and         production. More patent oppositions on sofosbuvir
                                              Ukraine. In Egypt, where the primary patent application       have been filed in Argentina, Brazil, Russia, Thailand,
                                              for sofosbuvir was rejected, a company called Pharco          France and India.

  12                                       Médecins Sans Frontières | July 2016
PATENT OPPOSITIONS AND PATENT LAW REFORM
PATENT LAW REFORM IN BRAZIL, SOUTH AFRICA AND ARGENTINA
South Africa and Brazil are in the              pharmaceutical companies involved             that charge unaffordable prices.
process of reforming their patent laws,         in the ‘Pharmagate’ scandal (a                In order to overcome IP barriers to
in part to more effectively manage              covert, $600,000 campaign funded              generic competition, a coalition of
prices for medicines, and to encourage          by large pharmaceutical companies             civil society groups has recently filed a
competition (and local production).             and medical device producers to               patent opposition in Brazil on the main
There is a lot at stake: South Africa has       delay - and influence - South African         patent related to TAF. In addition, in
the largest number of people living with        patent reforms). South African Health         November 2015, GTPI (Working Group
HIV in the world, and Brazil guarantees         Minister Aaron Motsoaledi has accused         on Intellectual Property), a civil society
HIV treatment for all, with many people         the multinational pharmaceutical              coalition, filed a patent opposition to
on salvage therapy, as well as first- and       companies in South Africa of conspiring       deny a patent to BMS (for atazanavir;
second-line treatment. But delays in            against the state and the people of           ATV) that could extend the patent
patent law reform will undermine access         South Africa, and called on all South         holder’s monopoly until 2024. Brazil
to affordable medicines, including ARVs.        Africans to fight back “…to the last          currently pays $496.40 pppy for
                                                drop of their blood.”50                       the 300mg version of ATV; a Health
SOUTH AFRICA                                                                                  Ministry-approved licence between
In 2015, 3.1 million people living              BRAZIL                                        BMS and the Brazilian government-
with HIV were accessing antiretroviral          Brazil is consistently excluded from          linked pharmaceutical laboratory
therapy through South Africa’s public           voluntary licensing programmes, and           Farmanguinhos forbids production of
sector,47 and the government recently           therefore forced into tiered pricing          atazanavir in newer formulations and
announced a ‘test and start’ policy.48          schemes from originator companies             combinations, such as ATV/r.51
As more people are treated, the need
for second-line and salvage regimens
will increase. Many of these ARVs
are patented and are too expensive
for the government to procure for
the public sector. But South Africa
has not introduced or implemented
key measures to safeguard public
health, including fully adopting TRIPS
flexibilities, and especially substantive
examination of patent claims. In 2008
alone, South Africa granted 2,442
patents, while Brazil granted only 272
patents between 2003 and 2008.49
                                                  © Stefan Heunis

In 2009, South Africa’s Department
of Trade and Industry (DTI) initiated a
process to reform the country’s IP law
and policy. In 2011, TAC, Section 27
and MSF co-launched the ‘Fix the Patent
Laws’ campaign, which now includes 18             MSF and the Treatment Action Campaign launched the ‘Fix the Patent Laws’ campaign
other non-governmental organisations.             to demand patient-focused reforms to South Africa’s patent laws.
The campaign highlights how
pharmaceutical companies have used
evergreening tactics to exploit South
Africa’s patent system. In September
                                                        EVERGREENING
2013, the DTI released a draft policy                   Many countries often do not           expired, but they are not because
document for public comment. But the                    examine patent claims strictly,       of evergreening.
new policy is still not finalised, and is not           leaving them vulnerable to
                                                                                              In Ukraine, home to nearly
expected until mid-2017.                                ‘evergreening’, whereby
                                                                                              265,000 people living with HIV,40
                                                        pharmaceutical companies make
The longer DTI delays, the longer it                                                          GSK extended its abacavir (ABC)
                                                        minor changes to medicines that
will take for South Africa to introduce                                                       patent monopoly by eight years
                                                        are already on the market to extend
short- and long-term reforms that                                                             with its secondary patent on the
                                                        their patents. Several ARVs should
can accelerate and promote generic                                                            hemisulfate salt.41 Ukraine’s price
                                                        now be free from patent barriers
competition, and to drive down prices                                                         for originator ABC is $277.40
                                                        (including ABC, DRV, EFV and
for patented drugs. The delay also raises                                                     pppy42 versus $123.42 pppy for
                                                        RTV) since their basic patents have
concern about undue political and                                                             the generic version.43
commercial pressure from multinational

                                                                                                                  Continued overleaf

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                            13
PATENT OPPOSITIONS AND PATENT LAW REFORM/ TRADE AGREEMENTS

                                                                Patent oppositions and patent law reform continued

                                                             At the same time, multinational              In November 2014, a multinational              Argentina adopted new patentability
                                                             drug companies are using lawsuits            group of pharmaceutical companies              examination guidelines for the
                                                             to challenge measures that promote           (INTERFAMA, the Pharmaceutical                 pharmaceutical sector to prevent the
                                                             generic competition in Brazil, including     Research Industry Association) filed           granting of numerous patents that
                                                             the country’s patent examination             a Collective Action against ANVISA,            do not meet specific criteria such as
                                                             process. Since 2001, ANVISA, Brazil’s        questioning the legitimacy of ANVISA’s         novelty, inventive step, and industrial
                                                             national drug regulatory agency, has         participation in the patent granting           application. Since Argentina’s new
                                                             participated in analysing pharmaceutical     process. Local civil society groups have       guidelines were enacted, 95% of
                                                             patent applications, instead of leaving      strongly reacted to these setbacks.            ARV patent applications have been
                                                             this task exclusively to patent office                                                      rejected, an increase from the 51%
                                                                                                          Patent law reform that would improve
                                                             examiners, and ANVISA has rejected                                                          rejection rate in 2012.54
                                                                                                          affordability of new medicines has
                                                             more than 400 of them. ANVISA’s role
                                                                                                          been delayed for more than two years.          In 2015, CAEME – the association
                                                             in pharmaceutical patent examination
                                                                                                          In 2013, a ‘package’ of bills to amend         of multinational pharmaceutical
                                                             has been considered an important
                                                                                                          Brazil’s patent law was introduced. If         companies in Argentina – filed a
                                                             safeguard to public health and access to
                                                                                                          approved, it will ensure that Brazil has       court case questioning the validity of
                                                             medicines.52 Multinational companies
                                                                                                          clearer criteria for patent examination,       the patent guidelines. In response,
                                                             have frequently contested ANVISA’s
                                                                                                          and introduce important flexibilities          civil society groups from Brazil
                                                             rejections in court. In 2011, the Attorney
                                                                                                          into its national laws.53                      and Argentina launched the ‘Big
                                                             General’s Office (AGU) issued a legal
                                                             opinion strengthening the position of                                                       Pharma Drop the Case’ campaign at
                                                             pharmaceutical companies – although it       ARGENTINA                                      the 31st session of the UN Human
                                                             proved unenforceable, the AGU has not        Argentina has taken steps to                   Rights Council, to push CAEME and
                                                             formally withdrawn its legal opinion.        improve its patent laws. In 2012,              INTERFARMA to abandon their actions.

                                                                         TRADE AGREEMENTS
                                                                 Governments, civil society and generics producers should use TRIPS flexibilities to improve affordability
                                                                 of, and access to, needed medicines. But TRIPS flexibilities are endangered by free trade agreements
                                                                 (FTAs) that pose serious threats to access to affordable medicines. These FTAs include intellectual
                                                                 property provisions – so-called ‘TRIPS-plus’ provisions – that exceed countries’ obligations under
                                                                 World Trade Organization (WTO) trade rules.

                                                             EU-INDIA FTA                                 TRANS PACIFIC                                  access to generic medicines due to
                                                                                                                                                         the proposed inclusion of TPP-like
                                                             Negotiations on the EU-India FTA             PARTNERSHIP                                    intellectual property rules by Japan
                                                             began in 2007. They have been stalled        AGREEMENT (TPP)                                and South Korea.
                                                             since 2012, in part due to public            The TPP is a far-reaching trade agreement
                                                                                                          across the Asia-Pacific region. If ratified,   Countries that did not join the TPP –
                                                             pressure, but may resume this year.
                                                                                                          the TPP will be the worst-ever trade           particularly India and key members
                                                             The EU-India FTA could jeopardise
                                                                                                          agreement for access to medicines: it will     of the Association of Southeast
                                                             access to India’s affordable generic                                                        Asian Nations – will be pushed to
                                                                                                          lengthen, deepen and expand intellectual
                                                             medicines for millions of people, by         property and patent monopolies, and            adopt similar standards in the RCEP
                                                             limiting production, sale and export of      prevent or delay access to affordable,         negotiations, which would represent a
                                                             medicines in the future.                     life-saving generic medicines for millions     rollback of protections against extended
                                                                                                          of people.56 While the TPP agreement has       patent terms and data exclusivity that
                                                             In the past, the EU has demanded             been signed by governments, it has yet to      are part of past agreements.
                                                             a range of intellectual property             be ratified by any country.
                                                             provisions that exceed India’s                                                              The RCEP negotiations will have
                                                                                                          REGIONAL                                       serious repercussions globally, since
                                                             obligations under TRIPS, including
                                                                                                                                                         both India, the ‘pharmacy of the
                                                             measures that would allow companies          COMPREHENSIVE                                  developing world’, and China, the
                                                             to prevent legitimate export of              ECONOMIC                                       world’s largest producer of the active
                                                             medicines to developing countries or         PARTNERSHIP (RCEP)                             pharmaceutical ingredients (API) used
                                                             bring legal action against people who        The RCEP trade negotiations among              to make medicines, are among the 16
                                                             buy or distribute generics.55                16 Asia-Pacific countries could threaten       countries included in the negotiations.

   14                                                        Médecins Sans Frontières | July 2016
TRADE AGREEMENTS
     COLOMBIA: COMPULSORY LICENCE THREAT INVITES US PRESSURE
     In April 2016, a leaked letter                               Thailand, Ecuador), which has                                As of mid-June 2016, the Colombian
     from the Colombian Embassy                                   discouraged other governments                                Minister of Health announced that
     described how the US Senate                                  from issuing compulsory licences                             they had issued a ‘public interest
     Finance Committee and the                                    to ensure affordable medicines.                              declaration’ regarding imatinib,
     United States Trade Representative                           As WHO states in its letter to                               without public information about
     were pressuring the Colombian                                Colombia’s Minister of Health,                               whether the government will issue
     government not to issue a                                    “unaffordable high prices of                                 a compulsory licence to allow
     compulsory licence* for the anti-                            essential medicines, including for                           manufacturing and import of price-
     cancer cancer drug imatinib.58
                                                                  non-communicable diseases, are                               lowering generic versions of the
     A number of countries have also                              a legitimate reason for issuing a                            drug, or simply reduce the price of
     faced similar pressure (Brazil,                              compulsory licence”.59                                       the Novartis product.60

     LDC EXEMPTION FROM PHARMACEUTICAL IP EXTENDED
     Least-developed countries                                    section 7) for pharmaceutical                                protect their TRIPS flexibilities in
     (LDCs) have been granted an                                  products until 1 January 2033.                 57            complex FTA negotiations.
     exemption from certain obligations                           But the free-trade agreements
                                                                                                                               LDCs in Asia, including Laos,
     under TRIPS, in recognition of                               that are being negotiated in many                            Bangladesh, Cambodia and Myanmar,
     their economic, financial and                                countries across the Asia-Pacific                            as well as countries in sub-Saharan
     administrative constraints and                               region, in particular RCEP [see                              Africa, should continue to use the
     their need to make or procure low                            Trade Agreements, page 14],                                  waiver to the fullest extent possible
     cost generic medicines. Under this                           could undermine the LDC transition                           to improve access to medicines
     transition period, LDCs do not have                          period, unless UN agencies and                               and should resist any pressure to
     to apply or enforce TRIPS provisions                         civil society provide technical and                          prematurely introduce intellectual
     concerning patents (TRIPS section                            political support to negotiating                             property rules that would undermine
     5) or test data protection (TRIPS                            countries, particularly LDCs, to                             access to generic medicines.

                                                                                                                                                                                © Aye Pyae Sone

        Regular check-up session for HIV positive patients at Muse clinic in Myanmar.

*	A compulsory licence (CL) is an effective option for increasing access to ARVs and other medicines in countries where they are patented. It is a legal mechanism to allow producers other
   than the originator company to make the drug or to import generic versions into a given country.

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                                                                                 15
STOCKOUTS
STOCKOUTS

               For years, many countries have faced shortages and stockouts of essential medicines. Stockouts can
               be caused by logistical and administrative challenges in procurement, supply chain management,
               or ‘last mile delivery’, and by medicines having only a single source (which may lead to shortages:
               these are generally those under patent, without compulsory or voluntary licences that
               allow generic manufacturers to supply them).

            Because of stockouts, people may                governments should make plans                    needed to ensure sufficient availability,
            receive smaller amounts of the                  for treatment transitions, ensure                while achieving economies of scale.
            medicine they need, which means                 appropriate buffer stocks and give
            extra time-consuming trips to the               clear clinical guidance on making                In South Africa, the Stop Stockouts
            clinic. They may also be switched               switches correctly.                              Project has empowered patients and
            to different, less-optimal doses or                                                              pushed for accountability in the supply
            regimens, or be told to buy the                 Generic manufacturers must work                  of medicines. The Project receives and
            medicines they need from the                    quickly to avoid shortages and                   publishes daily reports about drug
            private market with the promise of
                                                            stockouts, using information about               stockouts from people living with HIV
            reimbursement (which is usually not
                                                            current and pipeline ARVs, dose                  and health care workers, conducts
            fulfilled), or go without medicine
                                                            optimisation, changes in treatment               comprehensive national surveys to
            altogether - which can lead to drug
                                                            guidelines and eligibility, national and         monitor the locations and extent of
            resistance and illness.
                                                            global targets for treatment scale-up,           stockouts, and works with National
            As countries upgrade their protocols            and HIV epidemiology to anticipate               and Provincial Departments of Health
            to reflect WHO’s new ARV guidelines,            the quantity of API and final product            to identify and implement solutions.61

                                                                                                                                                   © Mariska Van den Brink

              In South Africa, the Stop Stockouts Project – a consortium bringing together six civil society organisations – is pushing for more
              accountability on stockouts of medicines that impact people’s access to regular treatment.

16          Médecins Sans Frontières | July 2016
STOCKOUTS
   MARKET SHAPING INSTITUTIONS – WHAT NEEDS TO HAPPEN
   The Global Fund to Fight AIDS,           the GFATM and other donors.                  to overcome any access barriers to
   Tuberculosis and Malaria (GFATM),        The GFATM may not be able to                 affordable medicines.
   UNITAID and the Medicines Patent         guarantee that these countries will
                                                                                         Recent GFATM correspondence
   Pool have played a central role in       be able to access the lowest prices
                                                                                         indicates that it may seek to optimise
   the provision of affordable ARVs         for new medicines, including those
                                                                                         tiered pricing policies from drug
   around the world, including use of       under patent, and it may even
                                                                                         companies, instead of overcoming
   quality-assured generic drugs by the     facilitate problematic tiered
                                                                                         commercial pricing strategies. The
   GFATM, PEPFAR and other funders.         pricing strategies used by drug
                                                                                         e-marketplace has been recently
                                            companies in lieu of promoting
   The GFATM’s market-shaping                                                            criticised by the GFATM’s Office of
                                            robust generic competition.
   actions go beyond its ability to                                                      the Inspector General for failing
   provide treatment for millions of        There are clear warning signs that           to implement competitive bidding
   people, and have an important            the GFATM is unwilling or unable to          processes for the first products
   impact on worldwide ARV access.          defend generic competition for the           offered over the website.62
                                            countries it supports. The GFATM
   After years of contributing towards      did not signal support for the LDC           At best, if the e-marketplace can
   collective efforts to reduce medicine    extension, and has been silent               overcome the challenges it is facing,
   prices, the scope and remit of the       about the Trans-Pacific Partnership          it could provide minimal technical
   GFATM is increasingly less ambitious     trade agreement. It has not                  fixes as to how governments
   and potentially counter-productive.      explicitly supported the use of TRIPS        purchase medicines, without
   Progress has stalled, especially for     flexibilities, although this principle       dealing with the underlying barriers
   middle-income countries, where           has been endorsed since the GFATM            that make them unaffordable in the
   pharmaceutical companies seek            started. Instead, the GFATM has been         first place. At worst, prices offered
   to charge high prices. Some of           championing an ‘e-marketplace’               under the e-marketplace will be
   these countries have a high disease      (currently known as wambo.org) to            insulated from the demands of
   burden, limited ability to pay for       make procurement more efficient.             government and civil society if such
   ARVs, and decreasing support from        But the e-marketplace is not expected        products remain unaffordable.

   UPDATE ON THE MEDICINES PATENT POOL’S NEW LICENCES
   The MPP voluntary licences               The VL for tenofovir now includes            Some MPP licences have been
   (VLs) offer some countries the           tenofovir alafenamide (TAF) and              disappointing. AbbVie’s new MPP
   opportunity to gain access to            has an expanded geographic scope             adult licence for LPV/r has a limited
   affordable generic versions of new       that allows generic producers from           geographic scope and may force
   ARVs, although many middle-              South Africa and China to join.              specific generics companies that sign
   income and upper-middle-income           The VL for elvitegravir (EVT) was            the licence agreement to forego the
   countries, such as China and Brazil,     amended to include production in             right to supply specific countries
   continue to be left out of these VLs     China and South Africa, provided             that they currently have the right
   and are therefore prevented from         that products are made from                  to supply. Furthermore, a new MPP
   buying the generic drugs produced        Gilead-licenced producers of active          licence with Bristol-Myers Squibb for
   through manufacturers based in           pharmaceutical ingredients (API).            daclatasvir, a hepatitis C medicine,
   their countries.
                                            In March 2016, GlaxoSmithKline (with         introduces a worrying precedent:
   On one hand, the MPP has added           ViiV) announced that it would increase       it allows BMS to sign sub-licence
   new VLs, and increased the               the geographic scope of its voluntary        agreements with generics companies
   geographic scope or added new            licensing agreements to include all          together with the MPP (the normal
   formulations to other licences. In       lower-middle-income countries. The           practice is to not allow branded
   2014, the MPP announced a new            MPP’s VL for DTG has been expanded           companies to be involved in signing
   agreement with AbbVie, for two           to include Ukraine, Morocco,                 a sub-licence agreement). MSF
   specific paediatric formulations         Moldova, Armenia and 14 other                is concerned that such a practice
   of LPV/r covering 102 low- and           low- and middle-income countries.            could allow branded companies to
   middle-income countries.63                                                            influence the practices of generics
                                            Although this is a welcome first step,
   In late 2015, a separate agreement       excluded upper-middle-income                 companies, including for unrelated
   was signed between MPP and AbbVie        countries will still be forced into tiered   products, and undermine the
   on the adult formulation of LPV/r        pricing schemes, and price-lowering          neutrality of the MPP in managing
   which only covers African countries.64   competition will be prevented.               the sub-licence agreements.

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                17
CONCLUSION
CONCLUSION

                The global response to HIV/AIDS has reached a turning point. Ensuring sustainable access to affordable
                generic ARVs will save millions of lives. Scaling up to 90-90-90 is projected to save over 1.1 million
                lives and prevent 873,000 new HIV infections in the next five years; keeping up the pace for 10 years
                will save more than 2.4 million lives (including the mothers of 1.7 million children), and prevent over
                2 million new infections.65

             To accomplish this, governments          Market-shaping institutions must         All governments and donors must
             must commit to scaling-up,               keep their focus on securing and         do their part to accelerate the global
             optimising, and maintaining access to    ensuring a sustainable supply of         HIV response and meet the challenge
             affordable generic ARVs in the long      diagnostics and adult and paediatric     of the 90-90-90 goals, including
             run, as HIV is a disease that requires   ARVs in low- and middle-income           fully implementing the latest WHO
             people to have constant access to a      countries, and the pharmaceutical        guidelines, putting in place effective
             range of treatment options. This will    industry should commit to registering    policies at the national level, and
             require governments to use TRIPS         ARVs in all countries, and expanding     ensuring all people living with HIV
             flexibilities, reform patent laws, and   the scope of their voluntary licensing   have access to the most effective
             reject harmful TRIPS-plus provisions     agreements to include all low- and       drugs, diagnostics, and models of care.
             proposed in various FTA negotiations.    middle-income countries.

                                                                                                                                 © N’gadi Ikram

18           Médecins Sans Frontières | July 2016
ANNEX: SUMMARY

                                                                                                                                                                    ANNEX: SUMMARY TABLE OF ALL PRICES
                 TABLE OF ALL PRICES
Developing country prices in US$ per patient per year, as quoted by companies.
This table contains comprehensive information about ARV pricing in developing countries. It includes adult and paediatric
formulations and doses, suppliers and WHO pre-qualification status/ US FDA SRA approval. The prices for developing
countries are in US $, per person, per year, based on WHO dosing recommendations, as quoted by companies. Currency
conversions were made when the pricing information was received, using the currency converter from www.oanda.com.

Each originator company applies its own eligibility criteria for discounting ARVs. Countries that are eligible for a discount
from one company may not be eligible for discounts from other companies. Usually, companies create two groups of
discount-eligible countries, often called ‘Category 1’ (countries that are eligible for the deepest discounts) and ‘Category 2’
(countries that are offered a lesser discount).

Paediatric formulations are highlighted in pink. Prices for paediatric products are estimated, based on WHO-recommended
dosing, for the 10 to 10.9 kg weight band. When it was not possible to calculate dosing for the 10 kg weight band, the unit
price was used.

The ARVs that are included in the WHO list of Prequalified Medicinal Products or that have tentative or full US FDA approval
(as of May 2016) are in bold.

 ARVs in              Daily
                                Originator company                                                 Generic companies
 alphabetical order   dose

 Abacavir (ABC)               ViiV                       Aspen     Aurobindo   Cipla     Hetero

 20mg/ml oral                 289                        249       228                   123
                      12 ml
 solution                     (0.066)                    (0.057)   (0.052)               (0.028)
                                                                               97
 60mg tablet          4
                                                                               (0.067)

                                        BMS
 Atazanavir (ATV)                                        Aspen     Cipla       Emcure
                               Category 1   Category 2
                                countries    countries

 100mg capsule        xx                                                       (0.267)

                              412           412          380                   207
 150mg capsule        2
                              (0.564)       (0.564)      (0.520)               (0.283)

 200mg capsule        xx      (0.677)       (0.677)      (0.670)               (0.433)

                                                                   170         219
 300mg capsule        1
                                                                   (0.467)     (0.600)
 Atazanavir/
                                                         Cipla     Emcure      Hetero
 ritonavir (ATV/r)
                                                         213       213         219
 300/100mg tablet     1
                                                         (0.583)   (0.583)     (0.600)

 Darunavir (DRV)              Janssen                    Aspen     Hetero

 75mg tablet          xx      (0.114)

 150mg tablet         xx      (0.227)

                              438                                  973
 400mg tablet         2
                              (0.600)                              (1.333)
                              663                        658       1,217
 600mg tablet         2
                              (0.908)                    (0.901)   (1.667)

                                        Merck
                                                                                                                                    Quality               Sun
 Efavirenz (EFV)                                         Aspen     Aurobindo   Cipla     Emcure    Hetero    Macleods   Microlabs               Strides
                               Category 1   Category 2                                                                              Chemicals             Pharma
                                countries    countries
                                            Case-by-
 30mg/ml suspension   xx      (0.094)
                                            case

 50mg capsule         xx                                           (0.058)                                              (0.057)

                                            Case-by-
 50mg tablet          xx      (0.114)
                                            case
                                                                   81                                                   57
 200mg capsule        3
                                                                   (0.074)                                              (0.052)
                              394           Case-by-                                                                                            113
 200mg tablet         3
                              (0.360)       case                                                                                                (0.103)
                              237           Case-by-     84        37          20        47        45        38         35          70          38        38
 600mg tablet         1
                              (0.650)       case         (0.231)   (0.100)     (0.055)   (0.129)   (0.123)   (0.105)    (0.095)     (0.192)     (0.105)   (0.103)

Untangling the Web of ARV Price Reductions | msfaccess.org/utw2016                                                                                                     19
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