/ 23 September 2002

Taking on the drug giants

Nontsikelelo Zwedala, an HIV-positive squatter from Philippi in the Western Cape, has joined the Treatment Action Campaign (TAC) and the Congress of South African Trade Unions (Cosatu) in a move to force two pharmaceutical giants to cut the cost of their Aids drugs.

They have filed papers with the Competition Commission, alleging monopolistic abuse of patent power.

Cosatu’s general secretary Zwelinzima Vavi said prices of medicines were too high for poor people and pharmaceutical companies were still opposing the entry of affordable generics.

The commission has been asked to investigate if the companies have contravened the Competition Act. The complainants compare the prices of four patented medicines with generic equivalents, showing a large differential.

”A month’s combination treatment from Glaxo and Boehringer costs R1176,” said the TAC’s Mark Heywood. ”The best-priced generic internationally costs R276 a month. For the cost of one treatment from the brand-name companies four people with Aids can be treated with generics.”

Heywood said the patent holders were refusing to allow other manufacturers to produce and sell generic versions of their drugs.

The group is calling for the Competition Tribunal to order the companies to end excessive pricing and to declare them responsible for prohibited practices. They could then be sued by people who suffered loss because of excessive pricing, and could face a fine of 10% of their yearly turnover, to be handed to the Treasury. Heywood said the government had been notified of the action.