Request for Solidarity from Korea: Gleevec price reduction

Korean civil society has asked KEI to disseminate this request for solidarity and action in their efforts to reduce the price of Gleevec, a leukemia treatment pill. The current price is approximately 2,300 USD per month for an adult patient and the Korean government has been sued by Novartis for trying to reduce the price a 14%. Korean civil society is also requesting Novartis to introduce a higher form, 400 mg, in Korea.

REQUEST for Solidarity:

We invite you to join us to protest against Novartis and its arrogance to prevent Korean patients from getting Gleevec at a lower price.

Novartis filed two lawsuits against the Korean government’s directive to lower the price of Gleevec

Novartis, one of transnational pharmaceutical companies, filed two lawsuits against the Korean government’s directive to lower the price of Gleevec, a leukemia treatment pill, on September 2, 2009: “provisional disposition for validity stop of drug price reduction” and “annulment lawsuit of drug price reduction disposition”. Gleevec was scheduled to be sold at a 14% lower price from September 15th 2009. However, as Seoul Administrative Court accepted the filing of “provisional disposition for validity stop of drug price reduction” on September 11th, the current price of Gleevec will be valid until the lawsuit is settled down. One authority from Novartis commented at the interview with a medium that “Novartis cannot follow the government order by the Minister of Health, Welfare and Family affairs that the price should be reduced just because it is too expensive.”

Disputes over the price of Gleevec have been ongoing since the approval of Gleevec in Korea in 2001. Ministry of Health and Welfare, back then, set the price of Gleevec for the National Health Insurance as 17,862 KRW, at which Norvatis made an extreme choice not to provide Gleevec for the Korean market, with an intention of increasing the price in the National Health Insurance formulary. The Korean government was alarmed at the power of monopolistic transnational pharmaceutical company when Norvatis declared a stop in providing Gleevec for Korea. Thus Korean government dismissed a request for compulsory licensing submitted by patients and NGOs in Korea based on the struggle for more than 2 years and gave in to Novartis by giving a full approval to the price of 23,045 KRW suggested by Novartis.

In 2008, NGOs and citizens (beneficiaries of National Health Insurance) in Korea submitted an appeal to reduce the price of Gleevec and to introduce Gleevec in a higher dose (400 mg) rather than the current one with 100 mg. Price of Gleevec was established in 2001 based on the price in A7 countries (US, UK, Germany, France, Switzerland, Japan and Italy), completely ignoring the difference in economic capacity between A7 and Korea. And the price of Sprycel, the next new drug for leukemia produced by BMS, was also set based on the Gleevec price, which was prohibitive for patients suffering from leukemia. The other reason for which Novartis is to blame is that Gleevec in 400mg is not provided in Korea. Gleevec in a higher dose (400mg) increases convenience thanks to fewer takes per day and reduces financial burden as well as possible iron intoxication. However, Gleevec in 400 mg is not found in Korean market only because Novartis, concerned about reduction in profits, does not supply it in Korea.

Experts in Korea claimed that the price of Gleevec should be lowered by at least 37.5% on the grounds of: 1) financial burden from the high price of Gleevec on the National Health Insurance; 2) reduction in imports duties; 3) reduction in subsidy to patients by Norvartis from 10% to 5% after copayment in NHS decreased from 10% to 5%; and 4) the cost-effectiveness compared to the new drug, Sprycel. Notwithstanding this claim, the Ministry of Health, Welfare and Family Affairs decided to order a 14% price reduction for Gleevec, which led the Ministry to be bombarded with fierce criticisms by many individuals and organizations. Still unsatisfied with the reduction, though ameliorated from 37.5% to 14% by the Ministry, Novartis launched the lawsuit against the government order only to maintain the high price of Gleevec in Korea.

Novartis has been high-handedly doing whatever needed to sustain monopolistic market power and keep the uniform price policy all over the world. Market for medicine and drug pricing policy in Korea have been violated by arrogant monopolistic behavior of Novartis as well as Roche, which is another transnational pharmaceutical company threatening lives of patients with HIV/AIDS by enforcing prohibitive price for Fuzeon. And, as with the usual cases in history, patients fall a victim to the great cause of profits.

History of price setting of Gleevec 100 mg

– May 2001: Novartis asked for at least US$ 2,400 per month for Gleevec, the uniform worldwide price, in the formulary of the National Health Insurance in Korea,
– November 19, 2001: The Ministry of Health and Welfare announced the price of 17,862 KRW per pill for Gleevec 100 mg
– November 27 ~ December 10, 2001: Novartis discontinued the Expanded Access Program, through which the company provided free Gleevec to patients
– January 29, 2002: NGOs requested compulsory licensing of Gleevec patents.
– March 4, 2002: Novartis applied for an increase in the price of Gleevec 100 mg up to 24,055 KRW
– February 1, 2003: Ministry of Health and Welfare approved the price of Gleevec at 23,045 KRW (at least 2.7 million KRW per month for an adult patient, approximately) based on the average price of G7 countries (US, UK, Germany, France, Switzerland, Japan, and Italy) with the condition that Novartis pays 10% of total costs.
– March 4, 2003: The Korea Industry Property Office dismissed the request of compulsory licensing for Gleevec.
– June ~ September 2008: NGOs and citizens (beneficiaries of National Health Insurance) submitted an appeal to reduce the price of Gleevec.
– September 1, 2009: The Ministry of Health, Welfare and Family Affairs announced an order to reduce the price of Gleevec 100 mg by 14% (19,818 KRW)
– September 2, 2009: Novartis filed two lawsuits against the Minster of Health, Welfare and Family Affairs: ‘provisional disposition for validity stop of drug price reduction ’and ‘annulment lawsuit of drug price reduction disposition ’
– September 11, 2009: The Seoul Administrative Court accepted ‘provisional disposition for validity stop of drug price reduction ’

It is common sense that everybody, sick and in need of treatment, should have a right to necessary medicines at a reasonable price. We are engaged in a struggle against monopolistic market power and prohibitive pricing policy by transnational pharmaceutical companies. We look forward to your support to our struggle to protest against Novartis and to save lives of patients with leukemia.
There are campaign series timely you can do to support our struggle.

[Campaign 1] To send your protest by fax, email and telephone to Norvatis from Oct 5th to 20th.

Head Office
Novartis International AGCH-4002 Basel Switzerland
Tel: +41 61 324 11 11
Fax: +41 61 324 80 01

Media:
Eric AlthoffDirector, Global Media Relations Basel, Switzerland
Tel: + 41 61 324 7999
Email: eric.althoff@novartis.com

Pamela McKinlay, US Public Relations New York, US
Tel: +1 212 830 2465
Email: pamela.mckinlay@novartis.com

Michael Schiendorfer, Head Public Relations Basel, Switzerland
Tel: +41 61 324 9577
Email: michael.schiendorfer@novartis.com

Satoshi Sugimoto, Swiss Public RelationsBasel, Switzerland
Tel: +41 61 324 6129
Email: satoshi_jean.sugimoto@novartis.com

Corporate Citizenship team
Christine Elleboode-Zwaans
Email: corporatecitizenship@novartis.com

We highly appreciate your support of solidarity.
October 5, 2009

Solidarity for HIV/AIDS Human Rights of Korea, Nanuri+/ Public Pharmaceutical Center / Solidarity for Lesbian Gay Bisexual Transgender Human Rights of Korea / Korean Gay Men’s Human Rights Group / Sarangbang, Group for Human Rights / Health Right Network / Korean Federation of Medical Groups for Health Rights / Association of Korea Doctors for Health Rights / Association of Physicians for Humanism / Korea Dentists Association for Health Society / Korea Health and Medical Workers Union / Korean Pharmacists for Democratic Society / People’s Solidarity for Social Progress / Intellectual Property Left / Korean Progressive Network Jinbonet / Korea Leukemia Patient Group / Solidarity for New Progressive

Contact: park eunhee, neweek95@gmail.com


LETTER:

Dear Daniel Vasella, Chairman and CEO of Novartis

We heard from our Korean friends that you Novartis filed two lawsuits against the Korean government’s directive to lower the price of Gleevec, a leukemia treatment pill, on September 2, 2009: “provisional disposition for validity stop of drug price reduction” and “annulment lawsuit of drug price reduction disposition”. 

And we worried about that following situations seriously infringe on Korean people’s right to access to medicine.

Your blockbuster, Gleevec was scheduled to be sold at a 14% lower price from September 15th 2009 in Korea. However, as Seoul Administrative Court accepted the filing of “provisional disposition for validity stop of drug price reduction” on September 11th, the current price of Gleevec will be valid until the lawsuit is settled down there. One of your authorities commented at the interview with a Korean medium that “Novartis cannot follow the government order by the Minister of Health, Welfare and Family affairs that the price should be reduced just because it is too expensive.”

In 2008, NGOs and citizens (beneficiaries of National Health Insurance) in Korea submitted an appeal to reduce the price of Gleevec and to introduce Gleevec in a higher dose (400 mg) rather than the current one with 100 mg.

Price of Gleevec was established in 2001 based on the price in A7 countries (US, UK, Germany, France, Switzerland, Japan and Italy), completely ignoring the difference in economic capacity between A7 and Korea. And the price of Sprycel, the next new drug for leukemia produced by BMS, was also set based on Gleevec price, which was prohibitive for patients suffering from leukemia. The other reason for which you are to blame is that Gleevec in 400mg is not provided in Korea. Gleevec in a higher dose (400mg) increases convenience thanks to fewer takes per day and reduces financial burden as well as possible iron intoxication. However, Gleevec in 400 mg is not found in Korean market only because you Novartis, concerned about reduction in profits, does not supply it in Korea.

Experts in Korea claimed that the price of Gleevec should be lowered by at least 37.5% on the grounds of: 1) financial burden from the high price of Gleevec on the National Health Insurance; 2) reduction in imports duties; 3) reduction in subsidy to patients by your company from 10% to 5% after copayment in NHS decreased from 10% to 5%; and 4) the cost-effectiveness compared to the new drug, Sprycel. Notwithstanding this claim, the Ministry of Health, Welfare and Family Affairs decided to order a 14% price reduction for Gleevec, which led the Ministry to be bombarded with fierce criticisms by many individuals and organizations. Still unsatisfied with the reduction, though ameliorated from 37.5% to 14% by the Ministry, you launched the lawsuit against the government order only to maintain the high price of Gleevec in Korea.

Your company as been high-handedly doing whatever needed to sustain monopolistic market power and keep the uniform price policy all over the world. Market for medicine and drug pricing policy in Korea have been violated by arrogant monopolistic behavior of your company as well as Roche, which is another transnational pharmaceutical company threatening lives of patients with HIV/AIDS by enforcing prohibitive price for Fuzeon. And, as with the usual cases in history, patients fall a victim to the great cause of profits.

We are thinking that you are going beyond one nation’s own sovereignty of supplying necessary medicines appropriately.

Supporting my Korean friend, we are strongly requesting you to do 

Withdraw the suits right now
Drop the Gleevec 100mg price more than 14%
Supply the Gleevec 400mg immediately

Thank you for your attention.
Sincerely

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