GSK Reducing Drug Prices in Developing Countries

Last Friday, GlaxoSmithKline announced a plan that would reduce the prices of several patented medications in 30 of the world’s lowest-income countries.  According to the Wall Street Journal, GSK also said it would invest 20% of its profits from low-income countries into health clinics and other infrastructure.

More details of the plan reveal that GSK will lower the price of medications to 25% of what it would be in developed countries.  GSK plans to include drugs that will treat asthma, hepatitis B and malaria.  Although some GSK drugs are already sold in developing countries, this new plan will reduce the prices of those drugs if they cost more than the 25% mark.

GSK CEO Andrew Witty also announced his proposal of a voluntary patent pool that would fuel development of new treatments for neglected diseases.  Witty directed his comments towards other pharmaceutical companies who could make patents available to other third-party researchers.  Interesting enough, GSK did not include its HIV/AIDS research in the patent pool.  Witty stated that the patent pool is to focus on diseases that do not have treatments.

Of course, there must be monetary reasons as to why GSK would not place its HIV/AIDS research into the patent pool.  However, it is nice to see GSK taking initiative into solving problems in developing countries.