Pharmabiz
 

US and foreign generic producers commit to fight HIV/AIDS

DurhamThursday, April 22, 2004, 08:00 Hrs  [IST]

US pharmaceutical companies have teamed with Indian and South African generic drug makers to attack the HIV epidemic in Africa and the Caribbean. The coalition's goal is to bring combination therapies to African and Caribbean nations at one-fifth of the lowest cost available in Western markets. The deal comes as large pharmaceutical companies express concern about the introduction of cheaper, generic therapies produced by Indian and South African companies. Though generics sometimes infringe on U.S. and European patents, they are lauded as an affordable weapon in the fight against HIV/AIDS. This deal marks the first time American pharmaceutical companies have worked towards an agreement with foreign generic producers. The move towards cooperation may signal an industry-wide change toward an environment where the two sides pick important issues to address together. "The weight of public opinion is difficult to fight if you're a major drug maker," said Jon Hess, senior analyst at Cutting Edge Information. "Developing a collaborative strategy overseas, however, does not diminish the importance of patent defense in lucrative drug markets such as the U.S. and Europe." Hess authored a report, "Combating Generics: Pharmaceutical Brand Defense", which offers insight into additional strategies available to pharma companies trying to insure profits against encroaching generics. The report explores an array of legal- and product-based strategies for defending pharmaceutical assets against generic competition. Tools analyzed include line extensions, defensive pricing, Rx-to-OTC switching, "flanking generics" and other licensing agreements, DTC advertising and outreach programs. It also includes lifecycle management activity timing and resources and key industry trends and developments.

 
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