Avoid Anti-malarial drugs price sit "roller coaster"
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Avoid Anti-malarial drugs price sit "roller coaster" 

Began in 2004, a huge market volatility of artemisinin, leading to artemisinin-based price movement of more than 700% of the purchase price of Artemisia annua in China has also experienced a sharp fall in the course of prices. Novartis anti-malarial drugs as a major supplier, subject to immense financial pressure. However, the efforts of a business alone is clearly unable to meet the growing global demand for anti-malarial drugs. Some international organizations are actively take measures to reduce the volatility of prices of antimalarial drugs.

July 16, the Clinton Foundation, the United Nations special envoy for malaria projects and Novartis Pharma Chairman of the Board and Chief Executive Officer, jointly announced with the company's six global co-operation agreement. Six companies, including China's Holley Pharmaceutical, Peter Di medicine, chemical medicine kalix Indian companies, Cipla company, Ipca Laboratories and Pharmaceutical Mangalam. Under the agreement, the antimalarial compound artemisinin agents - Artesunate Amodiaquine one and the price will drop more than 30%, while its main raw material for artemisinin-based decline in prices will reach 70%. Clinton believes that these companies promise to reduce the volatility of the rate of the pharmaceutical market and to provide sustainable low-cost drug prices, marking the world to be and anti-malarial treatment, economic and effective direction and represents a major step forward.

Anti-malarial drugs to reduce the price volatility

Clinton agreed AIDS action in accordance with the agreement, the Indian companies Cipla and Ipca will be equal to or less than 48 cents per person per cap prices, provide the most commonly used antimalarial artesunate products and Amodiaquine composite preparations, This price is lower than the current market more than 30%. At the same time, they will also be equal to or less than 91 cents of each Novartis current price, another commonly used anti-malarial treatment drugs artemether - lumefantrine. And in all of the manufacturers involved in these agreements, there are two Indian companies are reactive intermediates suppliers, their commitment to price-cap will be less than or equal to the price of artemisinin from artemisinin vendors, at the same time commitment to the best prices to the supply of pharmaceutical raw material manufacturers; Huali Di medicine medicine and he is committed to the market price of less than 70% (the highest market price 1100 U.S. dollars / kg as a standard) to provide artemisinin-based raw materials.

Clinton Foundation and the drug team of Executive Vice President Inder Singh said that the fundamental purpose of this agreement is to reduce the volatility of prices. He explained that the Clinton Foundation is not directly involved in the procurement of drugs, the agreement does not include the contents of the procurement of drugs, the strategy is integrated throughout the artemisinin market, the agreement provides the framework of the forecast demand for information to help enterprises meet international quality standards, and with the international non-governmental organizations, the African countries to carry out extensive cooperation with the Government; so that six companies to participate in a low price to a number of the existing procurement system, such as the Global Fund procurement system.

It is reported that the WHO is in the framework of the Global Fund procurement of drugs, and then provided to a number of countries. The Global Fund is now the world's largest project for the anti-malarial, anti-malarial drugs probably accounted for the procurement of 2 / 3.

Antimalarial market will expand 327%

Clinton Foundation recently released its report on the global demand for artemisinin-based combination forecasts. The report pointed out that if the price of artemisinin-based combination therapy subsidy scheme is implemented, the next 4 years the global demand for artemisinin-based combination therapy will at least double its growth rate may reach 327 percent, is expected to reach 400 million multi-box.

Inder Singh said that last year, the global anti-malarial drugs were distributed 100 million people. But the reality of the world suffering from malaria may be much higher than this figure is expected to have 300 million to 5 million people. Although the current drug treatment of malaria are very effective, but patients were mosquito bites may be sick again. Therefore, the actual demand and supply makes the difference between the number of government organizations, non-governmental organizations, international organizations, a great deal of effort into trying to increase in the global supply of anti-malarial drugs.

Inder Singh, the agreement artesunate and Amodiaquine ketone compound preparation of the use of last year has reached 35 million ~ 40 million people, if the price of finished drug reduced by 30%, 12 million people will increase access to drug .

Small pilot subsidy policies in Africa

In order to enhance the availability of anti-malarial drugs, the Clinton Foundation in Tanzania for the implementation of measures to subsidize pharmacy prices to ensure that patients can be combined cheap anti-malarial agents. 5 months in a short span of time, the pilot in the country had a positive impact. Artemisinin-based formulations containing a joint market share in the pilot area from less than 1% to more than 50% of the retail price reduced to 10 U.S. dollars from 0.5 U.S. dollars, anti-malarial treatment to children and also an increase of 60 times. Next year the Clinton Foundation and the Tanzanian government and other African countries in promoting such a small subsidy, it is expected to help the six million patients, and in Africa as a whole may benefit the tens of millions of patients.


Domestic enterprises have a good look

The representative of Chinese enterprises, said at a news conference, artemisinin-based industry ups and downs, Ebb Tide, some enterprises have been eliminated. The signing of this agreement will undoubtedly further enhance the degree of concentration of industries. Market has experienced ups and many companies realize that maintaining an appropriate profit for sustainable development is the trend in the development of artemisinin-based industries. Therefore, to join the Clinton Foundation and the supply of low-priced malaria drugs to protect the new agreement the two companies in China have indicated that they look forward to the future.

To help purify the market

"In the past few years, China's artemisinin medicines and raw materials producers and even Artemisia agricultural enterprises, have experienced from the peak to the trough of the price fluctuations. And the Clinton Foundation, with its influence around the world to participate in artemisinin-based industries , we look forward to the future. "days he is a director of Di, general manager of Miss Lin Ting said that the signed agreement is not a 3-year low prices, first of all, or to ensure that the enterprises in the industrial chain, there are a relatively stable profits.

Artemisinin is the only recognized by the World Health Organization anti-malaria medicine, but also China's first in line with international standards and their own intellectual property rights and the international drug patent originality.

In 2004, the World Health Organization to artemisinin-based antimalarial drug products as a first choice for guidance, suddenly in short supply of artemisinin. Up until today, a short period of 5 years, artemisinin extracted from more than a dozen companies to hundreds, artemisinin raw material prices, to sit as a "roller coaster", from the 150 U.S. dollars / kg to 1100 U.S. dollars / kg , the fluctuation range to reach 700%. However, the domestic industry was also experiencing artemisinin from hot to cold changes in inventories of raw materials last year artemisinin reached 150 tons.

林汀said that with the Clinton Foundation for African countries subsidies pharmacies, more and more orders will be composed of six companies to produce the supply of the League, so that enterprises can ensure that there is a long-term and stable sales channels. In addition, the project will not only help patients in Africa, but also help China's agricultural Artemisia. "The most downstream industry is China's farmers, they do eat a lot of loss, hope that this agreement allows them to have a more stable and reliable income."

林汀stressed that Peter Di medicine, this project group is an integral part of industries, ACTs for the project, it is still a public good, so the hope is to join the agreement to and more foreign enterprises to open the international market.

Prices do not increase the risk

Chongqing Holley medicine artemisinin production in China's big boss, just experienced in patent infringement after the storm, the Clinton Foundation signed an agreement with, no doubt opened a door leading to the international market. Turning to the provisions of this agreement artemisinin raw material prices 70 percent lower, Chongqing Holley Pharmaceutical Division, general manager of raw materials Ze Mu mushroom view that there is no risk at all.

"From the investor point of view, concluded that the risk depends on the frame of reference." He said that the current market price of artemisinin is about 210 ~ 220 U.S. dollars / kg, while in 1100 U.S. dollars / kg for 70% of the benchmark price, the agreement Now the ceiling is higher than the market price, hence there is no risk.

This agreement provides that the ceiling price of it come from? Mu Ze mushroom explained that, in many international conferences and the World Bank, WHO officials said that in the large-scale procurement under the conditions of the world's 300 million each year to ensure that 5 million copies of artemisinin-based combination therapy, it is expected prices should be controlled agents In about one U.S. dollars, while the layer-by-layer to the anti-raw materials, about the price now. Moreover, the agreement reached in 3 years, with the oil price fluctuations, the impact of the RMB exchange rate, artemisinin is the price of raw materials consultations.

Mu Ze mushroom that medicine Huali agreement only to the commitment of manufacturers to provide raw materials prices, the agreement does not have the responsibility and obligations of enterprises to provide promised price. "Even the agreement, we are also determined through commercial negotiations on prices."

Holley talked about the reasons to join the agreement, First Mu Ze mushroom is very important that the organization itself, the Clinton Foundation, AIDS as a result of its previous projects has a wealth of experience, but also between the two projects have many similarities, so the likelihood of success of this project will be great. Second, the internal coordination mechanisms to share industry information, guide enterprises to scientific decision-making. "We do not want to repeat the previous years of ups and downs! In addition, by agreement and the United States we have the opportunity to non-governmental organizations to promote China's own intellectual property rights of artemisinin, which is part of our marketing strategy is the development of international businesses a new opportunity for the market. "

Mu Ze mushroom that Huali medicine to the agreement itself, the members of the supply shortage of raw materials for enterprises of all raw materials into the 5, so the impact on poor earnings forecast. "But based on our understanding of the industry, anti-malarial drugs is a humanitarian industry. In addition, it is only our business an integral part of, but not all."

Future market to more than adequate separation of

Globally, artemisinin-based sales channels into the public market and private markets in two parts. Into a public market for more than 8, the main procurement by WHO, the source of funding is a global public good organizations. WHO in the selection of suppliers and the orders issued to emphasize the safety of drugs and cost require suppliers to supply products at cost. Novartis, the world's largest suppliers of artemisinin, and its procurement capacity of WHO 2 / 3, is the industry leader of a group of artemisinin.

The reasons for not joining the Novartis agreement? According to informed sources, the agreement is to ensure that price fluctuations will not be too severe. Over the years many manufacturers can not resist their loss caused by price fluctuations, while Novartis has not increased as a result of price hikes of raw materials prices of finished drugs, so they are not necessary to join the system.

Novartis for the current artemisinin-based industry, a dominance of the status quo,Doc Lin said that in the Clinton Foundation plans to continue the implementation of subsidies for medicines under the premise that with the expansion of market demand, the increase in industrial concentration, may have more than adequate separation of the situation. Mu Ze mushroom said that with the future increase in members of the alliance, and information sharing become a reality, the price fluctuations, supply chain security will benefit. Believe that the artemisinin-based industries to the stable, mature direction.