Press room ... 2002 archive

Project Inform Applauds HIV/AIDS Drug Price Freeze
Announcements by Pfizer Inc. and GlaxoSmithKline

June 24, 2002

San Francisco—Project Inform, a national HIV/AIDS treatment information and advocacy organization, applauded recent announcements by Pfizer Inc. and GlaxoSmithKline that they will impose a two-year freeze on the price of HIV/AIDS drugs for all payers, public and private. Pfizer announced in March that it would freeze the price of its HIV antiretrovirals and further discussions clarified the terms of the freeze. GlaxoSmithKline announced on June 20 its commitment to a freeze on the price of its' entire portfolio of HIV-associated drugs for all payers.

These announcements come at a critical time as public health programs, particularly the AIDS Drug Assistance Program (ADAP), are facing financial difficulties and, in some states, are unable to provide treatment to all who need it. ADAP is a federal program funded through the Ryan White CARE Act that provides access to treatment for low-income people living with HIV who are uninsured or without adequate prescription drug coverage. Many state ADAPs are experiencing fiscal crises due to inadequate federal and state funding, rising drug prices, and increased demand for services. As many as nine states have imposed waiting lists or other restrictions to treatment access. Additionally, Medicaid programs and private insurance are struggling to cope with the rising cost of drugs. The actions by these two companies show leadership in addressing those areas as well.

"We are very pleased with Pfizer and GlaxoSmithKline's leadership and commitment to addressing the needs of people living with HIV/AIDS who need access to life prolonging treatment," said Martin Delaney, Founding Director of Project Inform. "We thank the management of Pfizer and GlaxoSmithKline for supporting these actions along with the many people within each company who lobbied to bring them about."

Many advocates and groups, including Project Inform, the Fair Pricing Coalition, and community organizations participating in the National ADAP Working Group, have campaigned for this price freeze. More than 25 major AIDS organizations signed on to a petition calling for the price freeze. Advocates will continue to urge other pharmaceutical companies to follow the lead of Pfizer and GlaxoSmithKline and institute similar price freezes.

"We call on all pharmaceutical companies who manufacture HIV/AIDS drugs to follow the example set by Pfizer and GlaxoSmithKline and implement similar price freezes for all payers," said Anne Donnelly, Project Inform's Director of Public Policy. "While drug prices are not the sole reason for current limits in treatment and healthcare access, they do contribute significantly to the problem, and industry has a responsibility to play a role in finding a solution. Pfizer and GlaxoSmithKline have demonstrated strong leadership and we hope others will soon follow."

Advocates as well as spokespeople for the two companies have expressed the hope that the two year price freeze will provide a period of stability that will allow time for the creation of long term solutions to drug pricing and access problems.