Brokering a deal for HIV drugs is a big win

Implications:

Analysis:  Pharmaceutical companies have long claimed the high price of drugs is due to the need to recoup the cost of years(and millions of dollars) of R&D. Of course, hefty advertising aimed at doctors and directly to patients add to the cost of bringing drugs to market.

In that sort of climate poor patients and poor countries are deprived of vital drugs. Therefore it is very important when deals like these can be brokered. Partnerships such as these brokered by the Clinton Foundation means everyone is happy- the drug companies get market share, patients get crucial drugs they could not otherwise afford. In addition as competition among companies increases, consumers may be the beneficiaries of a lower price break.

It is to be expected that pharmaceutical companies will examine their sales and marketing strategies for other meds as well eg drugs for other chronic diseases like diabetes, CHF, CVD etc. Drug companies will seek out consortiums as much as consortiums seek out companies.

UNITAID and CHAI have demonstrated the wisdom of competitive bidding in a free market.