Pharmaceuticals and the Worldwide HIV Epidemic: Can a Stakeholder Model Work?

Abstract

The worldwide HIV-AIDS epidemic has generated intense criticism of pharmaceutical drug prices, a natural consequence of the industry's unique cost structure. A number of persons have proposed that the industry adopt what might be called a stakeholder model in place of the traditional profit-driven model. But the rapid drop in HIV drug prices, combined with generic entry and de facto abandonment of patent rights, has revealed the extremely limited role played by drug prices and access in the face of fundamental problems in infrastructure, prevention, and other essential elements in battling HIV-AIDS. Adoption of a stakeholder approach is likely to undermine essential R&D while doing little to curtail the HIV-AIDS epidemic.Health and Safety, Regulatory Reform, Other Topics