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The South African government this week awarded its long-awaited antiretroviral drug tender to seven pharmaceutical companies, including Abbot Laboratories and generic manufacturer, Aspen Pharmacare.
Although the tender announcement will benefit some 500,000 people in need of treatment and was widely welcomed, it has also elicited concern among activists and healthcare professionals, as drug prices are expected to increase over the next three years.
According to a circular sent to provinces by the national treasury, 180 of Abbot's Kaletra capsules, for example, will cost US $53 until the end of August, after which the price will increase to $60 and to $70 in 2006.
Jonathan Berger, a senior researcher with the advocacy group, AIDS Law Project, told a local newspaper, Business Day, that the contracted price hikes suggested government was less able to negotiate favourable terms with companies.
This article was produced by IRIN News while it was part of the United Nations Office for the Coordination of Humanitarian Affairs. Please send queries on copyright or liability to the UN. For more information: https://shop.un.org/rights-permissions