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PAHO, LATIN AMERICAN GOVERNMENTS AGREE ARVS ACCORD

August 9, 2005

According to Argentina's health ministry, officials from Mexico, South American nations and WHO regional agency PAHO have agreed to work to reduce prices of HIV/AIDS therapies. However, the absence of some drug firms -- and the refusal of others to participate -- has also been reported.

The unwillingness of some foreign drug firms to participate is unsurprising, in view of growing threats by governments in the region to break patents on innovative ARVs. Some sources now doubt that the agreement will amount to significant progress without multinational sector involvement, although the plans are likely to give official blessing to greater copying by local companies.

About 1.56mn Latin Americans are HIV positive, with roughly 354,000 now requiring treatment. It is estimated that 27 percent of this total have no access to ARVs. Meanwhile, official sources report that the discounts secured from drugmakers under the accord vary between 15 percent and 65 percent, with annual per patient cost of the more basic treatments -- which are likely to be off patent -- set to fall from US$350 to US$241. However, even if the new agreement proves successful, the average annual cost of the most recent hi-tech ARVs is likely to remain at US$1,123.