BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Monday, 1 July, 2002, 19:35 GMT 20:35 UK
Aids foundation sues Glaxo
Glaxo lab
Glaxo says this is not a matter for the courts
The largest Aids organisation in the US has taken GlaxoSmithKline to court, accusing the UK drugs giant of overcharging for its drugs and of violating antitrust legislation.


GlaxoSmithKline does not believe that litigation is the appropriate pathway to resolve matters such as these

GlaxoSmithKline
The lawsuit is part of a campaign in rich countries to make drugs companies slash prices there too after the $300bn a year industry agreed to cut the prices of medication in poor countries.

The Aids Healthcare Foundation has accused Glaxo of charging too much for its successful antiviral drugs AZT, 3TC and Ziagen.

The prices charged "exorbitantly exceed its costs of licensing, manufacturing and distributing" the lawsuit charged.

Not a legal matter

Glaxo has responded with disappointment at the way its generosity to the needy has been hijacked to back legal claims for equal treatment from people who can better afford to pay for their medicines.

"GlaxoSmithKline does not believe that litigation is the appropriate pathway to resolve matters such as these," a spokesman said.

Glaxo and many other drugs giants have agreed to slash the cost of medication in many poor parts of the world, as well as the prices of medication for other poor people such as the elderly in the US.

Their price reductions have not come merely due to the firms' altruistic nature, however.

Sometimes they have no choice but to slash prices to fend off illegal copycat products.

And in future, this battle will heat up as the patent protection awarded many of today's best selling drugs expire.

The drugs industry has consistently argued that it needs to continue charging high prices for drugs in order to pay for the research and development of new ones.


Key stories

Case studies

Background

CLICKABLE GUIDE

TALKING POINT

FORUM
See also:

28 Jun 02 | Business
27 Jun 02 | Asia-Pacific
25 Jun 02 | Business
12 Jun 02 | Business
24 Apr 02 | Business
12 Mar 02 | Business
08 May 01 | Business
25 May 01 | Africa
23 Mar 01 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes