[e-drug] Pharmalot: Glaxo Cuts Prices On AIDS Drugs For Poor Nations (2)

["Brook K. Baker" <B.Baker@neu.edu>]

E-DRUG: Pharmalot: Glaxo Cuts Prices On AIDS Drugs For Poor Nations (2)
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The fact that Glaxo is cutting its prices on AIDS drugs is welcome, though
like all price discounting, it might reduce incentives for generic entry.
However, the other part of the story that rarely gets reported is that
Glaxo is achieving significant cost advantages through economies of scale,
but none of those cost savings are passed on in rich country markets where
it continues to raise prices whenever it can.

Brook

Professor Brook K. Baker, Health GAP
Northeastern U. School of Law
Program on Human Rights and the Global Economy
400 Huntington Ave.
Boston, MA 02115
617-373-3217 (office)
617-259-0760 (cell)
E-mail: B.Baker@neu.edu