Reference no: EM133038817

GLAXOSMITHKLINE, BRISTOL-MYERS SQUIBB, AND AIDS IN AFRICA

In 2004 the United Nations predicted that 3 million people would die out of 5 million people who were infected with the AIDS Virus in the previous year and who were infected with the virus increased by about 40 million people. The data explains that 70% of the infected area are located in sub-Saharan countries. With so many sufferers, these countries are almost at a loss to get appropriate and affordable treatment. Antiretrovirals are drugs that can prolong the life expectancy of sufferers HIV/AIDS. Unfortunately the sufferers and also those who may be infected are not able to buy those antibiotics which cost around $10,000 to $15,000 to supply for one year. The companies that patented AIDS at the WTO are GlaxoSmithKline and Bristol-Myers Squibb by implementing the TRIPS agreement. GlaxoSmithKline and Bristol-Myers Squibb are major pharmaceutical companies that develop and combine various antiretroviral drugs to support to kill the HIV virus in the patient's body. Many organizations are trying lobbied these two companies to lower the price of this drug. Reasons for GlaxoSmithKline and Bristol-Myers Squibb does not sell the HIV virus-killing drug at a high price affordable income for residents in sub-Saharan countries because they think they are better take preventive measures, namely the local government should educate the population to avoid activities that risk contracting the HIV virus and the costs of developing drugs. It is very large and requires a lot of time and energy.Finally in February 2001, the pharmaceutical company from India, Cipla succeeded in making copies of three drug patents previously made by GlaxoSmithKline and Bristol-Myers Squibb and sold it to the sub-Saharan for a bargain $350. Glaxosmithkline and Bristol-Myers Squibb point Cipla stealing his property by copying the drug formula Glaxosmithkline and Bristol-Myers Squibb took millions of dollars to make antiretrovirals and to own the patents for the drugs. Cipla responded that his activities were legal because the TRIPS approval was not impact in India, and Indian patent law is available to manufacture the drug with the new "process". Cipla also claimed, since AIDS has become a disaster in developing countries including the sub-Saharan, TRIPS will make sub-Saharan country to AIDS drug adoption from Cipla, India. Then followed by other companies such as Ranbaxy, Aurobindo, and Hetero who make the same AIDS drugs and sell sub-countries sahara.

1. Is regulatory or government intervention necessary to prevent and address these problems? Give explanation and refference