GlaxoSmithKline further lowers the price of HIV/AIDS and anti-malarial medicines

09-Sep-2002

London, September 5, 2002 -- GlaxoSmithKline (GSK) today announced that it has further reduced the not-for-profit preferential prices of its HIV/AIDS medicines by up to 33% and its anti-malarial medicines by up to 38%. The price reductions are the latest stage in GSK's efforts to improve healthcare in the developing world through preferential pricing, community investment, and research and development of medicines and vaccines for developing world diseases. "We are today delivering on our commitment to review prices for these essential medicines for patients in 63 of the world's poorest countries." said Jean-Pierre Garnier, CEO of GlaxoSmithKline. "We are also expanding our existing initiatives in sub-Saharan Africa to find appropriate ways to offer not-for-profit prices to core public employees such as teachers, nurses, police and fire-fighters not covered by health insurance, and to private employers who do not have their own workplace clinics."

GSK has also stated it will supply these medicines at not-for-profit prices to all projects fully financed by the Global Fund to fight AIDS, TB and Malaria. In addition, it is seeking regulatory approval for special packaging to differentiate the preferentially-priced medicines sold under its access initiatives.

The price reductions are the result of a review of manufacturing costs and of increased economies of scale. They are intended to build upon the significant progress in GSK's developing world healthcare initiatives, which were outlined in "Facing the Challenge", published in June 2001. "Facing the Challenge - One Year On", published in July 2002, summarised developments in three key areas: preferential pricing, community investment and R&D.

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Preferential Pricing:

GSK sets a single, sustainable, not-for-profit, preferential price for each of its anti-retrovirals and anti-malarials to eligible customers in the Least Developed Countries and sub-Saharan Africa. Sustainable preferential pricing means setting prices at levels that meet the company costs and ensure a sustained supply of these medicines for as long as patients need them.

Since June 2001 GSK has:

- Achieved a ten-fold increase in shipments of preferentially priced Combivir to the developing world.

- Secured 115 arrangements to supply preferentially priced HIV/AIDS medicines to 42 countries, including some of the world's poorest.

- Granted a voluntary licence to Aspen Pharmacare for the manufacture and sale of ARVs in South Africa.

- Set up pilot projects in 5 African countries to assess the impact of preferential pricing of a broader range of products. In addition, in 2001 GSK supplied over 540m vaccine doses at significant discounts to UNICEF, WHO, PAHO and GAVI.

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