Current experience with differential pricing of HIV/AIDS

related drugs in Uganda

Dorothy Ochola M.D.-Muyingo Sowedi - Malamba S. Paul J. Weidle, Pharm.D.,MPH, -

Joseph Saba, MD.

10 April 2001 – Høsbjør, Norway

Based on experience from UNAIDS Drug Access Initiative

Background (1)

• Estimated population of 21 million people (1998)

• Average HIV prevalence is 7%.• An estimated cumulative number of

2,276,000 to have been infected since the onset of the epidemic in 1982

• 1,438,000 estimated to have died.• GNP per capita: $310 (1998).

Background (2)

• HIV-related drugs in several categories– STI drugs provided to patients through STIP– Basic drugs for treatment of opportunistic

infections– TB drugs– Basic drugs for pain relief & symptom control– Antiretrovirals & sophisticated drugs for

opportunistic infections – patient meets full cost

The UNAIDS/MOH D.A.I.

UNAIDS/MOH HIV Drug Access Initiative.• Goal: to increase access to HIV-related drugs

and care.

Two major mechanisms:• Adequate healthcare infrastructures• Differential pricing and responsive distribution

system

D.A.I.: Implementation

Pilot Program initiated in June 1998.– Access to antiretroviral drugs initiated 1 Aug.1998.– National Advisory Board to oversee activities.– Mechanism for negotiations, procurement and

distribution for ARVs established– Treatment centres for access to ARVs accredited.– Training of health providers in correct use of drugs

conducted– Patients pay for ARV medications and medical visits

ARV Price Analysis - Objectives

Carried out in December 2000 with the following objectives:– Describe the cost of ARV drug combinations to

patients in Uganda.– Describe reasons for price fluctuations of ARV to

patients in Uganda.– Quantify the price reductions as at end of 2000.

Method

• Information on cost of ARV gathered from medical Access (U) Ltd.– From August 1998 – December 2000.– Costs of drugs purchased in foreign currency 7

converted to Ugandan shillings

• Information on costs of drugs to patients gathered from treatment centres.– = cost of drug to medical access plus small

mark-up

ARV price reduction in Uganda

$284

$113

$221

$131

$230

$144

$270

$82$86

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5 - 49% reduction

at initiation of DAI – August 1998

Cumulative enrollment - DAI

137

273359

428

607

740

872 912

512

0100200300400500600700800900

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Aug-Sep98

Oct-Dec98

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ARV costs in response to Currency Valuation & Price Changes

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Uganda, 1999-2000

Reasons for recent price reductions

• Negotiated reductions in the prices of some drugs from multinational phamaceutical manufacturers

• Pressure from Governments, PWAs and other activists in developed countries on multinational companies

May 2000 announcement: Further Price Reductions

• 5 pharmaceutical companies/5 UN Agencies pledged to substancially reduce prices for developing countries.

• Effected in Uganda – November-December 2000.

• Price reductions for individual products 0-83% compared to Feb 2000 prices.

• Price reduction not same for all drugs (>50% for 6 drugs, 25-50% for 2 and <5% for 6 drugs).

Cost of 30 days supply of Combinations of ARVs in Uganda

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Brand name drugs onlyGeneric drugs where possible

Cost of 30 days supply of Combinations of ARVs in Uganda

using Generic Vs. Brand Name Drugs - Dec 2000

CENTER START DATE

JUL-2000 DEC-2000 JAN 01

         

*JCRC 01-Aug-98 423 (46%) 452 512

Nsambya 06-Aug-98 286 (31%) 305 345

Mildmay 05-Oct-98 158 (17%) 167 189

Mulago 21-Jun-99 33 ( 4%) 41 41

Mengo 02-Jan-00 12 ( 1%) 12 12

Total   912 977 1099

* Additional 536 patients started purchasing ARVs before August 1998 or had no clinical records at the center

ENROLMENT AFTER NEW PRICE REDUCTIONS

Lessons learned (1)

• The cost of ARVs is only one aspect of total cost of providing HIV/AIDS care.

• Few HIV/AIDS individuals have adequate financial resources to purchase ARVs – majority cannot afford even at current reduced costs.

Lessons learned (2)

• Need more public funding to enhance healthcare infrastructure and subsidize further drug costs.

• Depreciation of local currency may affect patients purchasing power, and therefore quality of care.

• Further price reductions will enable more of those previously on dual therapy to access HAART.

Conclusions• Differential pricing can be looked at from two

perspectives: the health care provider and the care seeker.

• In developing countries most care seekers cannot meet the costs. The provider to some extent is under obligation to fill the gap.

• We have recently seen important efforts for differential pricing. What are care providers prepared to do?