The Medicines Patent Pool Publishes Analysis of Projected Savings of its Licensing Agreements in Peer-Reviewed Journal
1 June 2017
Direct Savings to the Global Health Community Estimated to Reach $2.3 billion by 2028
Geneva, 1 June 2017 — The Medicines Patent Pool (MPP) published a study in peer-reviewed journal PLOS ONE estimating that savings of its licensing agreements for antiretrovirals (ARVs) to treat HIV in low- and middle-income countries could reach US$ 2.3 billion by 2028. The MPP has negotiated licences for 15 medicines for HIV, hepatitis C and tuberculosis, including nine formulations on the World Health Organization Essential Medicines List. Only its HIV portfolio, however, was the subject of the PLOS ONE analysis.
“The MPP is supporting HIV treatment scale-up through licensing agreements that have enabled developing countries to benefit from access to affordable, quality-assured generics,” said Greg Perry, Executive Director of the MPP. “Savings from the purchase of medicines developed by our licensees could allow national treatment programmes to care for millions more people living with HIV.”
The PLOS ONE study estimated the financial impact of MPP’s licensing work by comparing the originator’s baseline price for MPP-licensed ARVs versus lower-priced medicines in countries where generics could not sell before MPP licensing agreements, through each ARV’s patent expiry. The total savings of US$ 2.3 billion from 2010-2028 is equivalent to more than 24 million people receiving first-line antiretroviral therapy for one year. This represents an estimated cost-benefit ratio of 1:43, which means for every US dollar invested in MPP’s programmes, the global public health community saves US$ 43. The MPP’s HIV activities are funded by Unitaid.
The MPP is currently working with 16 generic manufacturers and one not-for-profit organisation to develop generic medicines under strict quality guidelines.[1] Its licences are non-exclusive, non-restrictive to encourage increased competition. They also are broad in geographical scope to include countries that are home to up to 91% of people living with HIV and up to 99% of children living with HIV in low- and middle-income countries.
To date, MPP licensees have distributed close to five billion doses of generic medicines to 131 countries.
[1] Licensees: Aurobindo, Beximco, Cipla, Desano, Emcure, Hetero, Huahai, Laurus Labs, Lupin, Micro Labs, Mylan, Natco, Sandoz, Strides Shasun, Sun Pharmaceuticals, TB Alliance, Zydus Cadila
Originators: AbbVie, Bristol-Myers Squibb, Gilead Sciences, Johns Hopkins University, Merck Sharp & Dohme, Pharco Pharmaceuticals, University of Liverpool, US National Institutes of Health and ViiV Healthcare
About the Medicines Patent Pool
The Medicines Patent Pool is a United Nations-backed public health organisation working to increase access to HIV, hepatitis C and tuberculosis treatments in low- and middle-income countries. Through its innovative business model, the MPP partners with industry, civil society, international organisations, patient groups and other stakeholders to prioritise, forecast and license needed medicines and pool intellectual property to encourage generic manufacture and the development of new formulations. To date, the MPP has signed agreements with nine patent holders for twelve HIV antiretrovirals, one HIV technology platform, a tuberculosis treatment and two hepatitis C direct-acting antivirals. The MPP was founded and is funded by Unitaid.
