Peru: Bristol-Myers gives discount, keeps patent

Peru’s health sector will purchase half a million tablets of the drug ‘Atazanavir’, widely used in the treatment of over 1800 Peruvians diagnosed with HIV. The new contract represents a reduction of 35% in the price paid for the drug, which previously cost up to 20 times the rate in neighboring countries.

The agreement was reached between pricing specialists and representatives of the US – based pharmaceutical company who owns the patent, Bristol-Myers Squibb. The company’s exclusive patent protection will last through 2019. During these negotiations, the Health ministry also issued a decree, declaring the drug to be a matter of Public Interest, which would have allowed for further reductions through the issue of Obligatory Licences.

This was blocked, however, by the Economy and Trade ministers, along with the Justice Ministry. Despite not being reduced to its lowest possible level, the drug’s new sale price will now be lower than that paid in Chile, Colombia or Mexico. In related comments, the Vice-minister for Tourism and Trade said the Obligatory Licenses route was rejected as they don’t foresee access problems for people, who will receive the drug free of charge. Besides, he said, the Health ministry can afford to pay for the higher cost.

In response, the leader of the Red Peruana de Pacientes y Usuarios (Peruvian Network of Patients and Users), Julio Cruz Requenes, said his organization will continue to fight for greater reductions in the price, allowing the millions of dollars saved to be re-directed towards supporting patients suffering from rare diseases.

Source: La República

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