SECTION27 and TAC applaud successful ARV medicine tender - but call for continued actions to drive prices of essential medicines down further
15 December 2010
SECTION27 and TAC applaud the Minister of Health and his team at the Department of Health (DoH) for their part in conceptualising, implementing and concluding a successful antiretroviral (ARV) medicine tender. Announced yesterday, the 2010 tender - for the period 1 January 2011 to 31 December 2012 - will see the state procuring ARV medicines at or about the best prices available globally.
This is in stark contrast to the previous tender, which resulted in South Africa paying significantly more than necessary for ARV medicines. For example, South Africa will now be paying - on average - about R115 per patient per month for the standard triple combination of tenofovir (TDF), lamivudine (3TC) and efavirenz (EFV). Under the previous tender, the country committed to pay about R110 for EFV alone - just a few rands less for only one drug.
In a press release issued on 15 April 2010, SECTION27 noted that "South Africa [would] soon be treating more than a million people with ARVs and this will make drug affordability ever more critical." With that in mind, we recognized the DoH's need "to use the procurement process to access the necessary range of medicines at the best possible prices.".
This appears to have been done. For example, the prices of two key drugs (which together will account for almost half - if not more - of the total expenditure on ARV medicines), have been reduced considerably. TDF will on average cost 65% less than before, with the average price of EFV to be procured being reduced by 64%. These prices will go a long way towards enabling the state to deliver on its constitutional mandate, including its commitment to ensuring access for at least 80% of people who are medically eligible to initiate ARV treatment.