Drug Giant Cuts AIDS Medicine Prices

(AP) GlaxoSmithKline on Monday further reduced the prices of its AIDS medicines for the world's poorest countries by up to 47 percent — the fifth time since 1997 that the company has cut prices.

The world's second largest drug company said more efficient manufacturing and increased economies of scale allowed for the reduction. The last time it lowered prices was in September 2002.

"These price cuts demonstrate our commitment to making vital medicines more affordable through sustainable preferential pricing," said Glaxo chief executive Jean-Pierre Garnier.

The discounts are available to the world's least developed countries and all of sub-Saharan Africa — a total of 63 countries.

The latest reduction lowers the price of Combivir, central to most HIV/AIDS treatment regimens, by 47 percent to 90 cents a day. The price of Epivir fell 45 percent to 35 cents a day, while Retrovir's price declined 38 percent to 75 cents a day.

In the United States and Europe, an AIDS treatment regimen averages about $15,000 per year. Under pressure from activists, the companies that manufacture AIDS drugs have cut prices for developing countries, and now many, like Glaxo, sell them there at no profit.