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Saving Lives, Buying Time: Economics of Malaria Drugs in an Age of Resistance (2004)
Board on Global Health (BGH)

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Saving Lives, Buying Time: Economics of Malaria Drugs in an Age of Resistance

THE CURRENT CHOICE

What is the current choice? In the view of the IOM Committee, it is unacceptable that cheap, effective drugs with a single medical purpose are currently unavailable to people whose lives would be saved by them. Failure to prevent the premature loss of our relatively few effective drugs through the simple expedient of coformulated drugs (currently, ACTs) also is unacceptable. The strategy offered in this report is a way to preserve the effectiveness of antimalarials for all global citizens—a true global public good. With coordinated policies, funding, and implementation, progress can be made. Without rapid adoption of ACTs, we will only continue to lose lives and lose ground.

RECOMMENDATIONS

At the Global Level

1. Within 5 years, governments and international finance institutions should commit new funds of US $300-$500 million per year to subsidize coformulated ACTs for the entire global market to achieve end-user prices in the range of US$0.10-.20, the current cost of chloroquine.

The subsidy must be applied high up in the ACT supply chain, above the level of individual countries. To assure the greatest international access, the public and private sectors of all endemic countries should be eligible to purchase ACTs at low, subsidized prices. In the future, subsidies could apply to other new combination antimalarials that meet technical criteria and are considered equivalent in their therapeutic promise to ACTs.

2. Artemisinin production should be stimulated in the short term by assuring and stabilizing demand through funding of at least $10-30 million per year from governments and international finance institutions.

Funds must be committed toward the global purchase of artemisinins in the 2- to 5-year time frame to encourage new companies to begin and producing companies to ramp up production. Once funds are committed and the conditions of purchase developed, potential producer companies should be actively solicited and provided with information and, if needed, technical assistance. If upgraded production facilities are needed, the International Finance Corporation (a sister institution of the World Bank) could provide needed funds. WHO should be prepared to assist companies in making their products “pre-qualified” and eligible for purchase through an international procurement process.

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