ADAP HIV Drug Price Negotiation
PRESS RELEASE from the National Alliance of State and Territorial AIDS
April 23, 2003
For further information, contact:
Murray Penner, (202) 434-8090
DRUG COMPANY NEGOTIATIONS RESULT IN ADDITIONAL SAVINGS TO STATE AIDS DRUG
Ongoing resolution of first-of-a-kind negotiations between state AIDS drug
programs and pharmaceutical manufacturers has yielded significant savings to
a system in crisis. Gilead Sciences, Abbott Laboratories, and Merck joined
Hoffman-LaRoche Pharmaceuticals in providing program adjustments that will
bring measurable relief to state-administered AIDS Drug Assistance Programs
(ADAPs) across the country.
"This was a first for us - an opportunity to use our buying power and our
unique role in fighting the epidemic to achieve real access and relief,"
noted Liza Solomon, AIDS Director for Maryland.
Savings from agreements with these four companies are preliminarily estimated
to be $25 million annually.
"We are pleased with the outcomes of this process so far," said Michael
Montgomery, AIDS Director for the state of California. "With 13 states having
already capped enrollment, these projected cost savings are literally going
to be life-saving."
"Gilead, Abbott, and Merck have worked closely with the AIDS community before
- by stepping up to the plate at this time, they are providing crucial relief
at a time of unprecedented crisis in our programs," noted David Poole from
the Florida ADAP program, the third largest in the country. Besides the
current capped enrollments in 13 states, nine other states have been
projecting drug program restrictions for next year and many more have
legislative, administrative, and regulatory cost containment strategies under
active consideration. "The challenge of assuring drug access is greater than
ever," said Jean McGuire, AIDS Director for Massachusetts. "More people are
living longer with HIV/AIDS. They are benefiting from our AIDS drug
programs. However, federal funding has not kept pace with the expansion and
serious revenue problems in states across the country mean that financing is
not keeping pace with need."
Eight states met with HIV anti-retroviral manufacturers in Washington four
weeks ago in negotiations that took place over five days and were sponsored
by the National Alliance of State and Territorial AIDS Directors (NASTAD).
The participating states (California, Florida, Maryland, Massachusetts, New
Jersey, New York, North Carolina and Texas) represent 75% of the expenditures
in the $850 million drug-purchasing program. The goal was to complete
agreements by the end of April. "States need this relief immediately", noted
Steve Sherman, ADAP Coordinator for North Carolina. His state has had a
waiting list for most of the last 15 months. Texas, which already is
projecting a significant deficit in its ADAP this year has started to look at
administrative cost savings. "Reduced eligibility, including clinical
criteria, a more limited formulary, and preferred regimens are all on the
table," noted Dwayne Haught, ADAP Director for Texas.
Negotiated agreements will achieve savings for ADAPs across the country th
rough a mix of program adjustments, including price freezes and supplemental
rebates for HIV anti-retroviral treatments and, in some cases, for a
company's whole product line. Discussions are still ongoing with
Pfizer/Agouron, GlaxoSmithKline, Bristol-Myers Squibb, and Boehringer
"We remain hopeful that significant agreements can be completed with the
remaining manufacturers," noted Julie Scofield, NASTAD Executive Director.
"They account for over half the expenditures and need to be a part of the
response to the crisis we face."
For further information, contact:
Dwayne Haught, Texas (512) 490-2505
Jean McGuire, Massachusetts (617) 624-5300
Michael Montgomery, California (916) 323-7415
David Poole, Florida (850) 245-4421
Steve Sherman, North Carolina (919) 715-3111
Liza Solomon, Maryland (410) 767-5013