Looming AZT shortage could cut availability of anti-AIDS drugs

Despite a surge in demand for the anti-AIDS drug AZT, pharmaceutical giant GlaxoSmithKline (GSK) is not increasing production, according to the AIDS Healthcare Foundation (AHF). AHF, an NGO running free treatment clinics in developing countries, said 8,000 Zambians could soon be forced to find alternative antiretroviral treatment (ART) to their current medication from GSK. "Continuous supply of drugs is essential and ... [being without stock] is a serious concern for treatment," said AHF President Michael Weinstein at a press conference Thursday. The shortage could affect patients in Africa and other parts of the developing world currently on drug regimens containing AZT. AHF has blamed GSK, producer and patent holder of AZT, for opting for short-term monopoly profits at the expense of international public health. "It is obvious - it is not a coincidence that this happens at this point in time, as patents expire. They [GSK] were producing in ample supply until they lost their stranglehold," Weinstein commented. The US patent for GSK's AZT drug, Retrovir, expired on 17 September, and its European patent runs out in March 2006. Both markets present lucrative options to generic manufactures of AZT formulations. AHF noted in a statement that GSK was aware of the current surge in demand for their patented drug, attributed primarily to the scale-up of US President Bush's US $15 billion global AIDS programme, PEPFAR, in developing countries. PEPFAR will only purchase medications approved by the Food and Drug Administration (FDA) for its global treatment efforts and until recently only GSK's AZT was FDA-approved. According to AHF, GSK expected generic drug manufacturers to enter the market as soon as the AZT patents expired. Fearing increased competition and plummeting prices, GSK decided it would be more profitable to reap monopoly profits now than to increase production to meet future global demand. However, their expectations did not materialise - generic manufacturers have been unable to step up production, much less distribution, to cater to the growing demand. "We have seen an increase in orders since PEPFAR, we think that is great news - but we didn't know how fast PEPFAR would be implemented and how fast governments would place orders," a GSK spokesperson told PLUSNEWS. "While GSK's actions may make sense to individual companies, they are a nightmare for public health systems and mean trouble for potentially thousands of people with AIDS," said Tom Myers of AHF. However, GSK said it was working closely with African governments and local third party suppliers to make sure the drug remains readily available. "No country has gone out of stock and we don't expect this to happen," the spokesman noted. However, Meyers inisted: "It is time to recognise that market forces do not trump public welfare, and that a drug company that enjoys a patent has a duty to ensure its accessibility, even if it means cutting into monopoly profits to guarantee an adequate supply." The shortage is not expected to affect the US, Western Europe, Japan and Australia. "The drug is available in plentiful supply in rich countries, but not where GSK supplies 'not for profit'" Weinstein remarked.