The Brazilian government has agreed a 29.5% cut in the price it pays for Kaletra after negotiations with manufacturer Abbott, it announced on Wednesday.
In the same week the first shipment of another antiretroviral drug arrived in Brazil under compulsory license after its manufacturer refused to agree a price cut.
On Tuesday the Brazilian Ministry of Health announced that it has received the first batch of generic efavirenz, imported under compulsory license from the Indian company Aurobindo. Brazil’s government issued a compulsory license in May following the refusal of patent holder Merck to reduce the price by 60% in May.
On Wednesday Abbott Laboratories said that it would reduce the price it is charging the Brazilian government for Kaletra (lopinavir/ritonavir) by 30%, from $1.04 per pill to 73 cents per pill this year and 63 cents in 2008. This means that Brazil will receive the drug at a cost of approximately $1000 a year in 2008, matching the price offered to lower middle-income countries earlier this year.
The Brazilian government expects to save $10 million this year, and will be able to shift 32,000 patients to the new heat stable tablet form of Kaletra by September.
"The difference between the two cases was that Abbott sought an understanding with the Brazilian government," said Health Minister Jose Temporao.
"It would be very promising if Abbott's example were to be followed by other laboratories," Temporao said.
"The signing of this agreement symbolises what can be achieved when governments and companies negotiate with the interests of patients in mind," Heather Mason, vice president of Latin American and Canada Operations at Abbott, said in a company press release.