PI Action alerts & updates ... 1996

Glaxo-Wellcome Raises Price of AZT & 3TC by 2.9%

Cost of Combination Therapy Remains Huge Burden

Join a national effort to persuade pharmaceutical
companies to lower their prices of anti-HIV therapies!!

On the weekend that the AIDS Quilt was being displayed in its entirety in Washington, DC, Glaxo-Wellcome announced that it was raising the price of AZT and 3TC by 2.9% In addition, the high cost of protease inhibitors has placed a huge burden on people with HIV/AIDS and on treatment access programs that serve them, primarily Medicaid and the AIDS Drug Assistance Program. Project Inform and other treatment advocates around the country are responding to concerns around drug pricing and the effect on treatment access. Please join this effort by demanding that the pharmaceutical industry does its part in making treatments affordable to all who need them.

Action Needed:
The following actions are intended to bring attention to concerns regarding the pricing of AZT, 3TC, and protease inhibitors because of their impact on the AIDS Drug Assistance Program, and do not immediately address the high cost of many other HIV/AIDS treatments. These actions are only the first part of a long term strategy to address the drug pricing issue. Also, it should be clear that each pharmaceutical company has a different track record on drug pricing; therefore, the four companies identified in this alert are not simply lumped together. The following actions are in priority order:

Glaxo-Wellcome: Write Robert A. Ingram, President and CEO, and express your outrage on Glaxo-Wellcome’s 2.9% price increase of AZT and 3TC. These two drugs are already the most profitable drugs in the history of the epidemic. At a time when access to HIV/AIDS drugs is in crisis, this price increase is abhorrent and must be rescinded. This increase will cost an individual about an extra $150 per year for both drugs - which can place a financial burden on many people already on a limited income. Moreover, the increase equates several million dollars of ADAP and Medicaid money that can be better used providing additional treatment access to those in need. Glaxo must also reevaluate the pricing of their HIV medications in light of new challenges to access. THE COMPANY MUST, AT A MINIMUM, IMMEDIATELY REVERSE THE 2.9% INCREASE!

Abbott and Hoffman Laroche: Write Duane L. Burnham, Chair and CEO of Abbott, and Patrick J. Zenner, President and CEO of Hoffman LaRoche, and express your concern about the high cost of their protease inhibitors, ritonavir/Norvir (roughly $6500 per year wholesale) and saquinavir/Invirase (roughly $5700 per year wholesale). The cost of these drugs, which are intended for use in combination with other drugs, place an impossible burden upon people living with HIV/AIDS and the assistance programs that serve them. ABBOTT AND HOFFMAN LAROCHE MUST IMMEDIATELY REEVALUATE THEIR PRICES!

Merck: Merck has priced its protease inhibitor, indinavir/Crixivan 25% to 33% below the other protease inhibitors, making it reasonable compared to its competitors. However this therapy, in combination with other drugs, is still out of reach for many people living with HIV/AIDS. In light of the more complex issues surrounding the Merck pricing, we have enclosed a slightly different sample letter. It is an appropriate action to send this letter, particularly if you are having difficulty accessing this drug.

Contact Information:
Robert A. Ingram
President and CEO
Glaxo-Wellcome
5 Moore Drive
Research Triangle Park, NC 27709
Ph: 919-248-2100
FAX: 919-549-7459

Duane L. Burnham
Chair and CEO
Abbott Labs
100 Abbott Park Road
Abbott Park,
IL 60064-3500
Ph: 847-937-6100
FAX: 847-937-1511

Patrick J. Zenner
President and CEO
Hoffman LaRoche
340 Kingsland Street
Nutley, NJ 07110
Ph: 201-235-5000
FAX: 201-562-2208

Raymond V. Gilmartin
CEO
Merck
One Merck Drive
White House Station,
NJ 08889
Ph: 908-423-1000
FAX: 908-735-1191

Sample Letters on Drug Pricing:

Mr. Robert A. Ingram
President and CEO
Glaxo-Wellcome
5 Moore Drive
Research Triangle Park, NC 27709

Dear Mr. Ingram:

I am writing to demand that Glaxo-Wellcome immediately reverses its decision to raise the cost of AZT and 3TC by 2.9%. These two drugs are already the most profitable drugs in the history of the AIDS epidemic. In addition, at a time when treatment access programs are in a fiscal crisis and many individuals are not able to obtain promising drugs, this increase will only add substantially to the problem.

If possible, insert a personal story here. If you or someone you know uses these treatments, discuss the financial strains of an increase in cost. You might also want to mention any problems with the AIDS Drug Assistance Program in your state and how this increase would exacerbate the problem.

AIDS advocates have fought hard all year for adequate access to treatments. The pharmaceutical industry’s role in helping to secure increase funding for ADAP is appreciated. However, you have a unique power to help improve this situation. Please reevaluate the cost of your HIV treatments.

Sincerely,
Your name

Mr. Duane L. Burnham
Chair and CEO
Abbott Labs
100 Abbott Park Road
Abbott Park, IL 60064

Mr. Patrick J. Zenner
President and CEO
Hoffman LaRoche
340 Kingland Street
Nutley, NJ 07110

Dear Mr. Burnham/Mr. Zenner:

I am writing to ask you to reevaluate the cost of your protease inhibitor, ritonavir/Norvir (or saquinavir/Invirase for the Hoffman LaRoche letter). The high cost of this drug has placed an unbearable burden on many people living with HIV/AIDS and the treatment access programs that serve people on a limited income and without adequate prescription drug coverage.

If possible, insert a personal story here. If you or someone you know uses these treatments, discuss the financial strains of these prices. You might also want to mention any problems with the AIDS Drug Assistance Program in your state and how the costs exacerbate the problem.

AIDS advocates have fought hard all year for adequate access to treatments. The pharmaceutical industry’s role in helping to secure increase funding for ADAP is appreciated. However, you have a unique power to help improve this situation. Please reevaluate the cost of your HIV treatments.

Sincerely,
Your name

Mr. Raymond V. Gilmartin
CEO
Merck
One Merck Drive
White House Station, NJ 08889

Dear Mr. Gilmartin:

I am writing to ask you to consider the high cost of combination therapy when you reevaluate the price of your protease inhibitor, indinavir (Crixivan). I appreciate that this drug is priced much lower than your competitors’ protease inhibitors. However, the price of combination therapy has placed a significant burden on people living with HIV/AIDS and treatment access programs that serve them.

If possible, insert a personal story here. If you or someone you know uses this treatment, discuss the financial strains of the price. You might also want to mention any problems with the AIDS Drug Assistance Program in your state and how the cost exacerbates the problem.

AIDS advocates have fought hard all year for adequate access to treatments. The pharmaceutical industry’s role in helping to secure increase funding for ADAP is appreciated. However, you have a unique power to help improve this situation. Please consider these points when reevaluating the cost of your HIV treatments.

Sincerely,

Background Information:
In the last year, treatments have become available that have demonstrated the potential of substantially improving the standard of care for many people living with HIV and AIDS. The concept of combination therapy (using two, three, or more treatments together) and the introduction of protease inhibitors have instilled hope in the AIDS community. Unfortunately, an insufficient and costly health care delivery system has made these new therapies, and the care necessary to administer them properly, unavailable to a growing percentage of people with HIV.

This year, advocates were able to win many victories that have sustained or improved access to care and treatment, including securing Medicaid as an entitlement and increased funding for the Ryan White CARE Act and the AIDS Drug Assistance Program. Strong advocacy has also created access to combination therapy with protease inhibitors to most Medicaid recipients and to patients receiving care through the Veteran’s Administration.

These achievements, however, are dwarfed by growing problems that make true access to care and treatment a nightmare for all people with chronic illness in this country. In addition, each of these problems is exacerbated by the high prices of AIDS drugs, especially protease inhibitors. In the last two years, the price for basic antiviral therapy has risen from an average of $2,500 a year for a single drug to $12,000 to $15,000 for combination therapy.

While the pharmaceutical industry has been willing to help with many battles, especially over expanding ADAP formularies and increasing funds for programs that purchase drugs, they have refused to take steps to lower the cost of their drugs, and Glaxo-Wellcome has actually raised prices in the face of a burgeoning public health crisis.

Grassroots advocates, including members of the Treatment Action Network, have worked diligently all year to fight for increased funding for ADAP. Our efforts have resulted in an amazing rise from $0 to $167 million in ADAP-specific funds in less than a year. In addition, many activists have been successful in persuading their state government to increase its portion of ADAP funding. While the battle for adequate funding is far from over, we must also turn attention to other causes of the crisis in treatment access programs. The pharmaceutical industry needs to hear from you that they play an important role in this issue and that they must do their part to make sure that everyone has access to treatments that may prolong and enhance the quality of their lives.