Increase in spending for AIDS drugs validates price cuts offered to ADAPs

On the heels of a report released by the National Alliance of State and Territorial AIDS Directors (NASTAD) yesterday regarding the AIDS Drug Assistance Program (ADAP), AIDS Healthcare Foundation (AHF) noted that new data contained in the report validates recent drug company price cuts offered to the program. The National ADAP Monitoring Project Annual Report notes: "Drug spending by ADAPs has increased more than seven-fold (617%) since 1996, more than twice the rate of client growth over this same period." This startling statistic demonstrates that a large percentage of ADAP funding increases are being applied toward rising drug costs, instead of to increasing the number of patients accessing lifesaving AIDS medication. Last week, following the Foundation's years-long advocacy campaign, AHF lauded Merck & Co. for significant price concessions offered by the company, which included doubling its drug discount rebates for ADAPs nationwide.

“The fact that spending for AIDS drugs has increased at twice the rate of new patients being served completely validates the recent price cuts offered by Merck to cash-strapped ADAPs, as well as the continuing campaign to persuade drug companies to cut drug prices for state programs”

The nation's AIDS Drug Assistance Programs is a federally-funded, state run program that supplies lifesaving AIDS drugs to low-income Americans in need. While many states are facing massive budget shortfalls and are seeking to cut services, more than twelve state ADAP programs have gone as far as to institute patient waiting lists to access services.

"The fact that spending for AIDS drugs has increased at twice the rate of new patients being served completely validates the recent price cuts offered by Merck to cash-strapped ADAPs, as well as the continuing campaign to persuade drug companies to cut drug prices for state programs," said Michael Weinstein, President of AIDS Healthcare Foundation. "While budget cuts have forced many state ADAPs to waitlist patients in need, AHF has been advocating for drug companies to do their fair share to ensure the sustainability of ADAPs by cutting prices. Last week, AHF applauded Merck for offering significant concessions that will undoubtedly make its key AIDS drug Isentress far more affordable and accessible to the thousands of people with HIV/AIDS who rely on the lifeline these programs provide around the country. We hope that other drug companies will follow suit."

Following an innovative, years long advocacy campaign spearheaded by AHF that targeted Merck and Co. Pharmaceuticals over the pricing of its AIDS drug Isentress—one of the most expensive first line AIDS therapies on the US market today—AHF lauded Merck last week for significant concessions offered by the drug company on its pricing and rebate policies for ADAP. Merck offered to double its drug discount rebates for hard-hit ADAP programs nationwide; freeze its price for ADAPs for Isentress at approximately $8,800 per patient yearly (more than $4,000 less than its $12,868 Average Wholesale Price [AWP] for the drug); and start paying its ADAP drug discount rebates to states upfront instead of months (or years) after the fact.

AHF's actions targeting Merck over the pricing of Isentress included staging protests at several healthcare financial/investor meetings where Merck scientists or executives were presenting; placing innovative vinyl train station banner ads urging, 'Merck: 'Do the Right Thing' hanging from light poles on the train platforms in Whitehouse Station, NJ, Merck's hometown and, initiating formal inquiries into Merck's pricing strategy for Isentress by the multi-billion dollar California Public Employees Retirement System (CalPERS), the nation's largest public pension fund and the California State Teachers Retirement System (CalSTRS)—both of which are major stockholders in Merck and sent letters to the company expressing concern about the price of Isentress.

In addition, over the past year AHF also sent several postcard mailers to homes in select zip codes in and around Merck's headquarters in Whitehouse Station, NJ in an effort to inform Merck employees about the company's pricing and policies regarding Isentress.

Source AIDS Healthcare Foundation (AHF)