Bayer Agrees to Cut Cipro Price for Government After Administration Threatens to Override Patent
HHS officials announced on Oct. 23 that Bayer AG has agreed to lower the price of its antibiotic Cipro for the federal government after the Bush administration threatened to override the drug's patent and allow generic production, the New York Times reports. HHS spokesperson Kevin Keane said that the company had agreed "in principle" to sell 100 million doses of Cipro to the federal government at a price of less than $1 per pill, a nearly 50% reduction from the current price of $1.83 per tablet. Bayer officials "confirmed" the agreement but "refused to discuss the price." The concession came after HHS Secretary Tommy Thompson "publicly demanded" earlier in the day that Bayer match the prices offered by generic drug makers who said they could produce a cheaper copy of Cipro if the federal government chose to override Bayer's patent, which expires in 2003. The demand "represented a nearly complete reversal" of Thompson's position last week, when he "emphasiz[ed] his desire to safeguard the patent system" (Bradsher/Andrews, New York Times, 10/24). Some officials and lawmakers advocating generic production have questioned whether Bayer could meet the government's demand for Cipro, one of the main drugs used to treat anthrax. But Thompson told a House panel that "price is the question, not the supply" (AP/Nando Times, 10/23). The demand to lower prices "appeared" to catch Bayer officials "off guard," the Times reports (New York Times, 10/24). "They're in shock," Thompson said (Dougherty, Washington Times, 10/24). A HealthCast of Thompson's testimony is available online.
Millions of Tablets
Bayer "repeated" yesterday that it will triple its production of Cipro in the United States over the next three months from about 60 million to 200 million tablets. According to Thompson, the 100 million tablets to be purchased by the federal government "would be enough to protect 10 million Americans," and would supplement a national stockpile "already adequate to treat 2 million people." The increased production also means that Bayer will have 100 million tablets -- 40 million more than its normal output -- for sale on the private market at its wholesale price of $4.67 per pill for pharmacies (New York Times, 10/24). Bayer president and CEO Helge Wehmeier issued a statement that said the company was "living up to its responsibility to support America in its hour of greatest need" (Vedantam/Brown, Washington Post, 10/24).
Other Antibiotics
The Wall Street Journal reports that Thompson yesterday tried to "relieve some of the controversy surrounding Bayer's patent" by noting that other drugs have proved effective in treating anthrax. Dr. Donald Henderson, on of Thompson's top bioterrorism advisers, said, "Those implementing the program have forgotten the fact that penicillin and doxycycline are equally as good" (Carroll et al., Wall Street Journal, 10/24). Federal health officials recommend that people exposed to anthrax be prescribed two tablets of Cipro a day for five days and then be switched to other antibiotics for an additional 55 days. In the initial Florida cases, the Times reports that "many private doctors" prescribed Cipro for the entire 60-day regimen (New York Times, 10/24).
A Patent Contradiction?
Despite Bayer's agreement with HHS, the controversy surrounding Cipro's patent is likely to linger, the Washington Times reports. A "major bone of contention" at a meeting of the World Trade Organization in Qatar next month will be "poorer countries' efforts to loosen patent protection for lifesaving pharmaceuticals." The United States has supported patent protections abroad, but Thompson's "threat to override Cipro's patent in the name of fighting anthrax appeared to contradict that stance," the Times reports (Washington Times, 10/24). Meanwhile, Sen. Charles Schumer (D-N.Y.), who has been one of the main advocates for allowing generic production of Cipro, reiterated his support for such a move yesterday. Schumer spokesperson Phil Singer said that getting Bayer to lower the price was "important," but "it's common sense to have a number of [companies] producing it instead of relying on a single producer" (Washington Post, 10/24). For comprehensive public health information from the CDC on anthrax and other bioterrorism issues, please visit www.bt.cdc.gov.