Press Release

Today AIDS Healthcare Foundation (AHF)announced that it has banned pharmaceutical sales representatives from Bristol-Myers Squibb (BMS) from calling on AHF’s medical providers and staff in its sixteen U.S. healthcare centers. The decision is based on BMS’ refusal to lower the price of its key AIDS drug Reyataz for cash-strapped AIDS Drug Assistance Programs.

In a letter sent to BMS CEO Lamberto Andreotti, dated July 22, 2010, AHF President Michael Weinstein and AHF Chief of Medicine/U.S. Homayoon Khanlou, M.D. state:

As AHF has repeatedly pointed out to BMS regarding this issue, the high price charged for Reyataz is contributing to a crisis that has left thousands of patients without access to lifesaving AIDS treatment.

As of the date of this letter, there are 1,879 people on ADAP waiting lists for AIDS medications. In addition, ADAPs are raising eligibility requirements that are shutting out even more people from the programs. This crisis is quickly becoming worse as many larger ADAPs are being forced to stop providing treatment to new and existing patients. For example, Florida, which has the third largest HIV/AIDS population in the country, recently instated a waiting list that now has over 600 patients on it.

In order to help alleviate the crisis, other major AIDS drug manufacturers have agreed to significant reductions in the pricing of their lifesaving AIDS medications to ADAPs, including Merck and Company, Johnson & Johnson’s Tibotec Therapeutics, Gilead Sciences Inc., Viiv Healthcare (a new drug company formed in a partnership between GSK and Pfizer) and Abbott Labs. But, not BMS. Meanwhile, twelve states have instituted waiting lists. And the number of people waiting to access medicines continues to balloon. In Florida, the waiting list is increasing at a rate of 250 to 300 people per month.

“Every other major AIDS drug company has responded to this crisis by agreeing to increase their assistance to ADAPs in the form of price reductions, increased rebates and other meaningful contributions. However, BMS has refused to do its part. This is unacceptable,” said Michael Weinstein, AIDS Healthcare Foundation President. “ADAPs cannot continue to subsidize the high price of Reyataz at the expense of people’s lives.”

The AHF letter asks Mr. Andreotti to inform BMS pharmaceutical sales representatives that they are no longer granted access to AHF Healthcare Centers, which serve more than 11,000 people living with HIV/AIDS in California, Florida and Washington, D.C.

“As a treatment provider, AHF’s mission is to deliver high quality medical care and services to provide for the health and wellbeing of people living with HIV/AIDS,” said Dr. Homayoon Khanlou, Chief of Medicine/US. “Since the current price of Reyataz interferes with this mission, we cannot in good conscience allow BMS representatives to access our clinics.”

Background on the Pricing and Impact of BMS’ Reyataz

Since it was first approved by the FDA in 2003, BMS has increased the price of Reyataz by over 25%. Today, the Average Wholesale Price (AWP) of Reyataz (atazanavir) stands at $13,046 per-year. AHF officials note Reyataz must be taken with at least two other HIV/AIDS drugs as part of an effective antiretroviral treatment regimen.

AHF has seen firsthand the impact of high priced AIDS drug like Reyataz. In California, for example, since 2000 the number of new ADAP clients has only increased by 50%, but AIDS drug spending has increased by 165%. The price of Reyataz and other drugs is a major contributing factor to this increase.

Background on AHF Advocacy on BMS’ Drug Pricing

Previously, AHF reached out directly to BMS asking the company to lower the price of Reyataz. In a letter to BMS’ CEO dated March 30, 2010, AHF President Michael Weinstein states: “Across the country, states have been forced to make cuts to ADAP services and enrollment because of high cost AIDS drugs like Reyataz. States can no longer afford to provide treatment to many of their current ADAP clients, and as costs increase more people will be put at risk of losing access to services. Ultimately, this means that the more people who go on high-priced Reyataz, the fewer who can receive services.”

Other efforts undertaken by AHF to bring attention to BMS’ inaction, include sending postcards to thousands of BMS employees and neighbors in the Princeton area, where BMS operates a site consisting of 1.67 million square feet of office space situated on 280 acres. The mailer included an image of Andreotti standing among piles of cash accompanied by the words “Shame on BMS.” In addition, banner ads are currently running at the Princeton Junction Station targeting BMS employees and surrounding community with the message: “BMS, Do the Right Thing!” along with AIDS Healthcare Foundation’s web address, www.aidshealth.org. An e-advocacy campaign generated hundreds ofe-letters from AIDS advocates from all areas of the country to BMS CEO Andreotti asking him to do the right thing and immediately lower the price of Reyataz.

In addition to the postcard, banner ad and e-letter campaigns describe above, in May AHF hosted a protest in New York City—where BMS is headquartered—during the Bank of America-Merrill Lynch 2010 Health Care Conference in advance of an investment presentation delivered by BMS executives at the conference. An additional protest was held outside the Hyatt Regency Century Plaza Hotel in Century City in June in advance of a presentation delivered by Lamberto Andreotti to investors—his first as BMS’ CEO—at the Goldman Sachs Global Healthcare Conference 2010.

AHF officials brought their concerns to the attention of the California State Teachers Retirement System (CalSTRS)—one of the largest public pension funds in the nation and a long-term owner of BMS stock, with more than 7 million shares currently worth over $190 million dollars. The investment fund sent a letter of inquiry to BMS regarding concern about the impact of the price of Reyataz. A similar action was undertaken recently by the California Public Employees’ Retirement System (CalPERS), provider of retirement and health benefits to more than 1.6 million public employees, retirees, and their families and more than 3,000 employers.

AIDS Healthcare Foundation (AHF), the largest global AIDS organization, currently provides medical care and services to more than 139,000 individuals in 23 countries worldwide in the US, Africa, Latin America/Caribbean the Asia/Pacific region and Eastern Europe. www.aidshealth.org

Last updated on: 27/08/2010 11:40:18