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March 09, 2007

The Numbers Are In

PEPFAR has released its third annual report to Congress. One highlight: The program is providing ARVs to more than 800,000 people.

Rob Weissman, who runs Essential Action and its access to medicines project, writes:

"The treatment chapter also contains important and useful information on Pepfar's use of generics and pricing data, starting on page 67. Key points:
- Fourteen of 15 focus countries are said to be using some generics.
- Overall expenditure in FY 2006 for ARVs was just under $110 million,
with about 27 percent of that spent on generics."

He points out the comparison of brand-name and generic prices for ARVs (page 72). Price differences for various three-drug combinations run from $165 for the generic and $594 for the name-brand (3.6 times as much) to $487 for the generic and $606 for the name-brand (20 percent more).

UPDATE, March 22: The ever-critical Center for Health and Gender Equity argues that the 800,000 number is inflated, and that abstinence programs are causing problems disproportionate to their share of the PEPFAR budget.

Shirttail: In the South African Business Day, Nobel economist Joseph Stiglitz makes the case that drug prices are disproportionate to the costs their makers incur.

Posted by Adam Graham-Silverman at March 9, 2007 11:38 PM

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