Julia Hill

Untangling the Web
of Antiretroviral Price Reductions
Julia Hill
Médecins Sans Frontières/Doctors Without Borders
Access Advocacy Officer
Gaborone, Botswana
August 21, 2014
Overview
• Context of ARV treatment today: focus on pricing
• Cost of first-line, second-line, salvage regimens
• Policies & strategies to overcome threats to access
• Viral Load Monitoring
• Pricing policies for “middle-income” countries
• Intellectual Property Law Reform & Trade Negotiations
• Access overview for important new drugs
MSF Access Campaign
MSF Overview: A Brief History
• Independent International Medical
Humanitarian Organisation
• 1971: founded by French doctors &
journalists
• 1980s: MSF becomes international
- operational centres throughout
Europe
- sections around the world
• 1999: winner of Nobel Peace Prize
-Access Campaign founded
• 2013: 5 operational centres; 23
Associations. Int’l Office. Operating in
over 60 countries
MSF Access Campaign
ARV Treatment Today: Where are we?
• 12 million on ART today; 17 million more eligible based on CD4 500
• Early treatment reduces illness, death, transmission…but also creates
new challenges:
• Adherence challenges: can be improved through decentralisation strategies
(task shifting); viral load monitoring; community-based ART support groups.
(MSF: 91% ppl on ART with viral load <1000 copies/mL)
• Stock outs, quality assurance, registration delays, weak health care systems
can also limit access.
• Medicine prices will have a significant impact on countries’ ability to scale up
treatment; offer improved regimens—serious threats to affordability remain.
MSF Access Campaign
Prices of Different First-Line Regimens
MSF Access Campaign
Evolution in Price of First Line Regimens
MSF Access Campaign
Price Comparison of Treatment Regimens
MSF Access Campaign
Evolution in Price of Boosted Protease
Inhibitors for Second-Line Regimens
MSF Access Campaign
Third-Line ARV Price Regimens
MSF Access Campaign
Viral Load Monitoring:
Optimal ART & a strategy for cost saving
• Necessary!
•
•
•
•
Undetectable viral load keeps people healthy; stops transmission
Monitors treatment efficacy: If effective, VL should be undetectable.
Detect treatment failure: More sensitive and specific than CD4
Prevent drug resistance: can be used to initiate adherence counseling, help prevent drug
resistance, preserve 1st line
• Can trigger PMTCT interventions
• Feasible!
• Dried blood spots, pooling samples
• Mobile health tech for results delivery
• Financially viable!
• Cost saving strategies (sample pooling)
• Price per test can come down through increased
transparency; pooled procurement; addressing
IP barriers
price
MSF Access Campaign
Tiered Pricing: a growing MIC challenge
• Middle-Income Countries (MICs) home to ¾ of the world’s poor
• Survey of 7,000 ARV purchases in developing countries, 2002-2007:
• Tiered prices up to 500% more expensive than generic prices
• Lack of price transparency; GNI determinant for price exacerbates problem
2013 Price Per Patient Per Year LPV/r as
Component of Second-Line ARV Regimen
MSF Access Campaign
TRIPS Agreement, Doha, and IP Reform
• Ability to overcome patent barriers increasingly important
• India’s use of TRIPS flexibilities upheld—but feeling US/EU pressure
• Other countries undergoing patent law reform:
• South African policy aims to stop patent evergreening
• Brazilian report looks to alternative innovation models
• Some countries get better prices than others:
• India utilised strict patentability criteria, oppositions
• Thailand has pursued compulsory licenses
• South African use of competition law to set precedent for VL
MSF Access Campaign
The Push-back: Voluntary Licenses,
#Pharmagate & Trade Negotiations
• Voluntary licenses outside MPP used
to avoid compulsory licenses in
countries like India—lack
transparency of terms; limit price
reductions from competition
• Big Pharma scandal in South Africa
recalls Nelson Mandela court case;
illustrates challenges of IP reform
• Trade agreements and ISDS sign
countries up to TRIPS+ measures—
limits use of TRIPS flexibilities
MSF Access Campaign
What does this mean for future
availability of promising ARVs?
MSF Access Campaign
Darunavir (DRV)
• Salvage therapy; future option for
second-line? (dependent on supply
and price)
• Initial patent expired 2013;
subsequent patents licensed by US
NIH to Tibotec (now Janssen/J&J)
• Secondary patent applications filed
by Tibotec—all rejected in India
• 2010: NIH licensed DRV patent to
Medicines Patent Pool, but Janssen
patents aren’t in pool.
• 2012: J&J—patents won’t be
enforced in Sub-Saharan Africa
(excludes MICs). FDC with Gilead’s
cobicistat submitted to US FDA 2014.
MSF Access Campaign
Dolutegravir (DTG)
• More effective in achieving virologic control compared to
TDF/FTC/EFV—good candidate for first or second-line
• Well-tolerated, effective, daily dose, high resistance barrier, pediatric
potential
• Patents granted or pending in many MICs; initial expires post-2026;
secondary patents post-2029
• “Markush” claim inhibits R&D—opposed in India
• MPP license with Viiv—67 royalty free low-income countries; tiered
royalty structure for public market in six countries; excludes key MICs
MSF Access Campaign
Lopinavir/ritonavir (LPV/r)—paediatric
• WHO-recommended 1st line treatment for children under 3; secondline for children receiving first line NNRTI
• Preferred over nevirapine-based therapy; but LPV/r syrup has
challenges:
• Refrigeration required
• Unpleasant taste
• High alcohol content
• New Cipla pellet formulation could offer benefits: can be mixed in
food, heat stable, alcohol free, but not yet taste masked
• Patents related to RTV also cover LPV/r pediatric combos
MSF Access Campaign
Raltegravir (RAL)
• WHO indicates as third-line option
• New class of drug, no apparent cross resistance
with other ARV classes. Non-inferior to EFV in
treatment-naïve, effective for treatmentexperienced.
• BUT dosed twice daily, frequent AEs, doseadjusted for TB patients, not recommended for
pregnant women
• Merck quality-assured; Hetero submitted to US
FDA
• Initial patent runs from 2022-2025; India patent
does not expire until 2022
• Not licensed to MPP; VLs with Emcure and Mylan
for only 60 SSA/low-income countries—for
export only. Limits generic competition in MICs
2013 Price Per Patient Per Year RAL
MSF Access Campaign
Tenofovir alafenamide (TAF)
• Pro-drug of TDF—very effective with fewer side effects
• Each pill can contain less of the active ingredient with same efficacy
• Being trialled in phase III; co-formulated with FTC, elvitegravir,
cobicistat
• Should be registered as single drug for full flexibility in use
• Initial Gilead patent runs until 2020-2024 (including in India).
• Little known about price; generic competition will be limited until
2021 (when India patent expires—divisional patents also exist).
• Gilead in negotiations with Indian generics; MPP
MSF Access Campaign
Call to Action
• Access to lower ARV prices requires:
• Increased price transparency from countries
• Support for IP reform utilising TRIPS flexibilities in key
countries (South Africa, India, Brazil)
• Country advocacy for LDC extension on implementing
TRIPS at WTO
• Avoid TRIPS+ measures in bilateral or multilateral treaties
• Viral load monitoring demands:
• Purchasers increase price transparency, encourage
competition, address IP
• Funders support implementation of WHO guidelines
• Cost reduction & feasible strategies be implemented (e.g.
Dried Blood Spots)
MSF Access Campaign
Resources: ARV Pricing
• Untangling the Web 17: https://www.msfaccess.org/utw17
• Medicines Patent Pool
• Book: The Global Politics of Pharmaceutical Monopoly Power
• Patent Opposition Database
• Fix the Patent Laws (South African campaign)
• Activist Guide to IP Reform
• Equal Treatment on IP Reform
MSF Access Campaign
Resources: Undetectable
• Report: Undetectable: How Viral Load Monitoring Can Improve HIV
Treatment in Developing Countries
• Issue Brief: HIV status? Undetectable
• Issue Brief: How Low Can We Go? (Pricing of VL Testing)
• Report: Putting HIV Treatment to the Test (Product Guide)
• Issue Brief: Getting to Undetectable (5 country experiences)
http://www.msfaccess.org
@msf_access
http://www.msf.org.za
@msf_southafrica
[email protected]
@MSFJuliaHill
@FixPatentLaw
#PharmaGate
MSF Access Campaign
Extra Slides: Viral Load Monitoring
MSF Access Campaign
MSF Access Campaign
MSF Access Campaign
What does a VL test cost?
MSF Access Campaign
What are the Cost Drivers?
MSF Access Campaign