financingpricingcasestudy

financingpricingcasestudy - PROCUREMENT OF ANTIRETROVIRAL...

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PROCUREMENT OF ANTIRETROVIRAL MEDICINES IN SOUTH AFRICA This short case study is based on an Oxfam GB briefing paper entitled “Assessing the Impact of TRIPs-Plus Patent Rules in the Proposed US-SACU Free Trade Agreement” (2005) by Jonathan Berger and Achal Prabhala. A draft version of the paper is attached is for your reference. Participants are expected to use the MSF pricing guide in answering the questions posed. Summary: In South Africa, the state is in the process of rolling out a comprehensive HIV/AIDS treatment package. Crucial to the success and sustainability of this program is the procurement price of antiretroviral medicines (ARVs). We examine different price scenarios, underpinning a key determinant of price – Market Structure – especially in relation to intellectual property rules and national laws. The context of the case study is a real life situation where (as of presenting this exercise in April 2005), the Southern African Customs Union (SACU) of which South Africa is a key member, is negotiating a Free Trade Agreement (FTA) with the United States that includes potential changes to national intellectual property laws. The Case Study 1 : Background On 19 November 2003, the South African National Department of Health announced an ‘Operational Plan’ for the rollout of ARV medicines in the public health system. The DoH was responding to an urgent domestic concern: UNAIDS/ WHO statistics from 2004 suggested that of the approximately 5.3 million people living with HIV/AIDS in the country, 750,000 were in need of ARV treatment. The operational plan was announced at a time when the price of ARVs had seen significant decline. Indeed, the operational plan noted that: “Two years ago, this programme for comprehensive care and treatment would have been impossible amongst other things due to the cost of the medicines and laboratory tests required.” ARV pricing
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