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Roche To Broaden Tamiflu Access
By Julia Mengewein
Of Dow Jones Newswires
JULY 1, 2009
ZURICH (Dow Jones)--Drug maker Roche Holding AG (ROG.VX) said Wednesday it will provide easy access to the viral drug Tamiflu for developing economies, at about half the price normally charged, in a move which will significantly hit its profits in those countries.
Under the program, Roche will produce and store Tamiflu pandemic stockpiles for specified developing countries at a significantly reduced price with the cost spread over a number of years, the company said.
It will sell a pack of ten Tamiflu capsules at the highest dose of 75 milligram for between EUR5 and EUR6, instead of the usual price of around EUR12, said company spokeswoman Martina Rupp. Lower doses are provided at a lower price.
The actual price will depend on the storage and delivery services provided by Roche, Rupp said, adding that the company will finance the program alone.
"This will significantly cut into our profits in those countries," she said.
Some 70 countries, which are members of the Global Alliance for Vaccines and Immunization, can take part in the program. India, where a generic version of Tamiflu is available, is excluded from the program, Rupp said.
Roche won't sell Tamiflu for any less under the program, Rupp said. But the company is in talks with the World Health Organization, the United Nations, and other agencies if they are willing to step in for countries that can't afford the drug at the cheaper prices, she added.
In 2008, Roche's pharma division generated total sales of 35.96 billion Swiss Francs ($33.20 billion). The Latin America and Asia-Pacific regions had a share of 6% and 5% respectively.
The countries can exercise their option to purchase the product at any time, and Roche is confident it has the capacity to provide what's needed.
"In the May to September period, we increased our capacity to produce 110 million packs of Tamiflu per year and next year, this will go up to 400 million," Rupp said.
Over the last five years, governments around the world have stockpiled Tamiflu or Relenza, a similar drug made by U.K.-based GlaxoSmithKline PLC (GSK), to prepare for a potential pandemic outbreak. However, only 0.02% of all low-income economies have a stock pile of Tamiflu, Roche said.
Earlier last month, the World Health Organization declared a pandemic for the A/H1N1 swine flu virus.
Company Web site: www.roche.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45, julia.mengewein@dowjones.com
By Julia Mengewein
Of Dow Jones Newswires
JULY 1, 2009
ZURICH (Dow Jones)--Drug maker Roche Holding AG (ROG.VX) said Wednesday it will provide easy access to the viral drug Tamiflu for developing economies, at about half the price normally charged, in a move which will significantly hit its profits in those countries.
Under the program, Roche will produce and store Tamiflu pandemic stockpiles for specified developing countries at a significantly reduced price with the cost spread over a number of years, the company said.
It will sell a pack of ten Tamiflu capsules at the highest dose of 75 milligram for between EUR5 and EUR6, instead of the usual price of around EUR12, said company spokeswoman Martina Rupp. Lower doses are provided at a lower price.
The actual price will depend on the storage and delivery services provided by Roche, Rupp said, adding that the company will finance the program alone.
"This will significantly cut into our profits in those countries," she said.
Some 70 countries, which are members of the Global Alliance for Vaccines and Immunization, can take part in the program. India, where a generic version of Tamiflu is available, is excluded from the program, Rupp said.
Roche won't sell Tamiflu for any less under the program, Rupp said. But the company is in talks with the World Health Organization, the United Nations, and other agencies if they are willing to step in for countries that can't afford the drug at the cheaper prices, she added.
In 2008, Roche's pharma division generated total sales of 35.96 billion Swiss Francs ($33.20 billion). The Latin America and Asia-Pacific regions had a share of 6% and 5% respectively.
The countries can exercise their option to purchase the product at any time, and Roche is confident it has the capacity to provide what's needed.
"In the May to September period, we increased our capacity to produce 110 million packs of Tamiflu per year and next year, this will go up to 400 million," Rupp said.
Over the last five years, governments around the world have stockpiled Tamiflu or Relenza, a similar drug made by U.K.-based GlaxoSmithKline PLC (GSK), to prepare for a potential pandemic outbreak. However, only 0.02% of all low-income economies have a stock pile of Tamiflu, Roche said.
Earlier last month, the World Health Organization declared a pandemic for the A/H1N1 swine flu virus.
Company Web site: www.roche.com
-By Julia Mengewein, Dow Jones Newswires; +41 43 443 80 45, julia.mengewein@dowjones.com
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