28 November 2000

PFIZER AND GOVERNMENT DEAL: A PUBLIC RELATIONS CEREMONY FOR WORLD AIDS DAY?
WHEN WILL THE PILLS REACH PEOPLE?

Activist pressure globally and in South Africa for price reductions and
generic substitution has forced drug giant Pfizer to donate fluconazole to
the South African government. TAC is sceptical of the deal. The deal was
first announced on 31 March 2000. Then, in July 2000 at the International
AIDS Conference, Pfizer announced that it had made a deal with the
government. This was untrue. Now, when the Medicines Control Council have to
rule on exemptions for generic fluconazole - we hear of this deal again. TAC
will only claim the "deal" a victory when fluconazole reaches people in our
clinics and hospitals.
TAC demanded that Pfizer either reduce the price of fluconazole to less than
R4 per
capsule or give the SA government a voluntary license to import or
manufacture fluconazole. Pfizer responded by offering to donate fluconazole
to the public sector for people with cryptococcal meningitis. Activists
demanded that the offer be extended to cover the far
more prevalent condition, systemic thrush. Pfizer has now agreed to do this.
But they still refuse to lower the price in the private sector or to issue a
licence for generic substitution.

Health Systems Trust shows that some of the poorest people in rural and
urban areas use their savings to gain access to private sector medicine.
Many workers on medical aid can only purchase their medicines in the private
sector. This offer excludes the private sector. The campaign for a price
reduction and generic substitution will continue until the private sector
price is reduced. Neither does the deal cover other SADC countries, or other
poor countries in Latin America and Asia, many of whom are also victims of
Pfizer's greed.

The government can buy generic fluconazole for less than R2.00 per 200mg
capsule. It has failed us by refusing to demand a licence from Pfizer. TAC
warns the government and Pfizer, do not raise the hopes of people with
HIV/AIDS who are dying because of your need for ceremony and public
relations on World AIDS Day.
TAC again draws attention to the government and the public - donations and
charity will not build a sustainable health care sector. Lower prices
through generic competition will allow prices of all medicines including
anti-retrovirals for people with HIV/AIDS to become affordable and
accessible to all.

It should also be noted that this is not an act of generosity from Pfizer.
They score thrice - (1) the government has not applied for a compulsory
licence against their patent abuse and (2) they get good publicity. (3)
Pfizer will also claim a tax deduction in the US on the donation. The
company will make more money on the tax deduction than sales of their
product could have achieved at their current price in South Africa.

Pfizer will always be held responsible for the thousands of people for whom
this deal has come too late, people like TAC activists Christopher Moraka
and Sibusisu Mkhize who suffered terribly from systemic thrush and
cryptococcal meningitis respectively when
they died.

There must be no further delays. The donation must be implemented
immediately. Pfizer and government, be warned. TAC will monitor the
donation.