Switzerland (5) -- Analyses-- July-Spetember 2006

The cut

29.09.2006

"The compelling need for an inexpensive and highly effective malaria treatment, especially in low-income countries, prompted our decision to provide Coartem below our costs," Chief Executive Daniel Vasella said. Malaria kills about 1 million people a year and is the biggest cause of infant mortality in Africa. Novartis' treatment has a cure rate of as much as 95 percent even in areas of multi-drug resistance. ZURICH, Switzerland Swiss pharmaceutical company Novartis AG said Friday it is cutting the price of an antimalarial medicine by 36 percent to make the treatment more widely available. The Basel-based company is cutting the cost of its Coartem treatment to an average US$1 from US$1.57 (79 euro cents from €1.24), Novartis said in a statement. The move takes effect immediately. "The compelling need for an inexpensive and highly effective malaria treatment, especially in low-income countries, prompted our decision to provide Coartem below our costs," Chief Executive Daniel Vasella said. Malaria kills about 1 million people a year and is the biggest cause of infant mortality in Africa. Novartis' treatment has a cure rate of as much as 95 percent even in areas of multi-drug resistance.

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