Abbott Uses NAFTA To Charge Mexico Significantly Higher Than Middle-income Country Rate

Main Category: HIV / AIDS
Also Included In: Medical Malpractice / Litigation;  Pharma Industry / Biotech Industry
Article Date: 18 Sep 2008 - 3:00 PDT

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As part of its ongoing campaign to lower drug prices and improve access to lifesaving AIDS treatments globally, AIDS Healthcare Foundation (AHF), which operates three free treatment clinics in Mexico (Puerto Vallarta, Cancun and Tuxtla Gutierrez) today unveiled a new print advertisement criticizing Abbott Laboratories, Inc. for the steep price it charges for its key AIDS drug Kaletra in Mexico. The ad, headlined 'Shame on Abbott,' first appeared in the September 6th "Weekend" edition of the Lake County News-Sun, a regional daily newspaper covering parts of the Chicago metropolitan area, and appeared again in the September 13th edition. As part of the first stage of the campaign, the ad is scheduled to appear in the News-Sun over the next two weekends and will be followed by further public awareness-raising efforts.

The advocacy ad blasts Abbott for charging Mexico five times more than other middle-income countries for its key AIDS drug, Kaletra. By exploiting patent protections in the North American Free Trade Agreement (NAFTA), Abbott is able to charge Mexico $5,400 a year for Kaletra, a key second-line treatment for people living with HIV/AIDS, while charging $1,000 per year in Brazil-a country with a similar economy to Mexico. In the ad, AHF calls on Abbott to lower the price of Kaletra in Mexico to the price offered in Brazil.

"Abbott is once again living up to its terrible record on AIDS by abusing NAFTA's patent protections to charge five times as much for Kaletra in Mexico as it does in other middle-income countries, a heartless business calculation that effectively makes this drug all but out of reach for nearly all those living with HIV/AIDS in Mexico," said Michael Weinstein, AIDS Healthcare Foundation President. "Through this ad, AHF hopes to make policy makers and the public-at-large-including Abbott's employees and Illinois neighbors-aware of the striking inequity in the company's corporate policies regarding its pricing of Kaletra in Mexico. We call upon Abbott executives to end this price-gouging that put profits ahead of saving lives."

"Many patients' lives here in Mexico depend on access to drugs such as Kaletra that are available elsewhere at a much lower cost," said Patricia Campos, M.D., AIDS Healthcare Foundation's Latin America Bureau Chief, who is based in Mexico. "We strongly urge Abbott to immediately lower the price of Kaletra in Mexico to equal the price offered to Brazil in order to ensure that people in need in Mexico are not priced out of such potential lifesaving AIDS treatments."

Following is the full text of AHF's 'Shame on Abbott' advertisement

Shame on Abbott

In Mexico, Abbott charges 5 times more for its AIDS medicine Kaletra than it costs in other middle-income countries.

Abbott's Price Gouging in Mexico Puts Profits Ahead of Saving Lives

Abbott's AIDS medicine Kaletra is an important 2nd-line treatment for people with AIDS, but Abbott is abusing NAFTA's patent protections to force Mexico to pay 5 times more than it charges Brazil. Kaletra costs $1,000 per year in Brazil, a country with a similar economy to Mexico, but Abbott charges Mexico over $5,400. This represents one of the worst examples to date of Abbott's terrible record on AIDS. Without affordable pricing for Kaletra for people in Mexico thousands of lives will be lost.

AIDS Healthcare Foundation calls on Abbott to immediately lower the price of Kaletra in Mexico to equal the price offered to Brazil.

For more information, please visit http://www.aidshealth.org.

In Latin America, AIDS Healthcare Foundation currently provides free anti-retroviral treatment to people in need through its clinics in Mexico (in Puerto Vallarta, Cancun and Tutxla Gutierriez, La Paz) and in Guatemala (Quetzaltenango).

About AHF

AIDS Healthcare Foundation (AHF) is the nation's largest non-profit HIV/AIDS organization. AHF currently provides medical care and/or services to more than 80,000 individuals in 22 countries worldwide in the US, Africa, Latin America/Caribbean and Asia.

AIDS Healthcare Foundation