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ADAP HIV Drug Price Negotiation
  PRESS RELEASE from the National Alliance of State and Territorial AIDS
Directors (NASTAD)
April 23, 2003
For further information, contact:
Murray Penner, (202) 434-8090
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 Ingelheim.
"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
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