The UK Secretary of State for International Development, Douglas Alexander MP today announced that the UK is working with the Clinton Foundation to help Indian pharmaceutical companies produce cheaper drugs for malaria and AIDS in India and Africa. The proposed programme (up to £9 million between 2009 - 2012) will provide technical support to Indian companies in producing and registering new treatments for AIDS and malaria, and negotiate affordable prices for these drugs. This will help over 11 million people with AIDS gain access to life saving treatment by 2012.

Douglas Alexander said "Three million people died of HIV/AIDS in 2007, and every year, there are over one million deaths from malaria. Governments and private sector companies need to work together to expand access to more effective and low cost medicines to reduce this unacceptable burden.

"'Indian pharmaceutical companies have made a massive contribution to improving the health of the poor, by providing affordable drugs in India and to other developing countries. We want see their contribution grow, by reducing the barriers they are facing in entering markets for newer and more effective medicines for AIDS and malaria".

"It's a genuine win-win situation. With DFID support to the Clinton Foundation, health services for malaria and AIDS in India and Africa will be able to buy drugs at cheaper prices and put more people on better quality treatment, and pharmaceuticals companies will enjoy a bigger market."

Former President, Bill Clinton said:"The efforts of the Clinton HIV/AIDS Initiative have enabled more than 70 countries around the world to have access to CHAI prices for HIV/AIDS drugs and diagnostics -- representing approximately 92% of people living with HIV globally. We've also negotiated a 90% reduction for pediatric medicines around the world.

"Today I applaud the United Kingdom for its consistent aid efforts around the globe and I am grateful to Douglas Alexander for the partnership being undertaken. It is because of partnerships like these that the Clinton Foundation can continue to help governments throughout the world access high quality and affordable commodities, and increase the number of people receiving treatment for AIDS and malaria"

Indian generics drugs companies already provide the majority of antiretroviral drugs (ARVs) used as first line combination therapy for AIDS, and have some 85% of the market. As Indian firms have entered the market for these drugs over the last eight years, prices have fallen dramatically without sacrificing quality, innovative products have been introduced, and numbers of people receiving treatment in India and other developing countries has increased significantly.

Currently there are barriers to entry for pharmaceutical companies into other drug markets ' including for more effective second line ARVs, and newer, more effective drugs for malaria which use a plant extract called artemisinin (ACTs). Unpredictable demand has reduced investment in more efficient and less costly production processes.

The project, to be implemented by the Clinton Foundation will:

• provide technical and registration support to Indian generics' manufacturers to build robust drug portfolios and become competitive in second-line ARV products, as well as 'next generation' ARVs (i.e. one- pill-a-day treatments which are more effective than today's drugs but cost three times more.)
• gather and provide reliable information about future demand for medicines ' encouraging investment. This would cover both the supply of ARVs and also artimisinin combination therapies (ACT) for malaria
• · negotiate affordable price agreements with suppliers so that the poorest countries can buy them.

· The Clinton Foundation estimates that with their support Indian manufacturers could increase their share of the market for ACTs to more than 60% by 2012, and to over 80% of the generics market for ARVs for AIDS. The opportunity for total top-line growth among Indian suppliers in these markets exceeds $400 million over four years.

Indian programmes to treat people with AIDS and malaria would also benefit from increased access to more affordable drugs. India could save between US$11 and US$20 million annually on ARV purchases due to projected price reductions.

India is the British Department for International Development (DFID) largest bilateral programme. In line with the UK's global priority to tackle HIV and AIDS, support to India's national response is one of the Department's largest commitments. Since the mid 90's, DFID has provided support to India's response through a large number of projects, having worked with government, civil society and other donors for more than a decade.

Overall, DFID has committed more than £130 million (over 1000 crore), supported over 300 projects across the country and reached an estimated audience of a quarter of a billion people through mass media campaigns. DFID presently supports The National AIDS Control Programme III (NACP III, £102m, 2007-2011) for prevention interventions through NGOs working with high risk groups, wider communication and condom promotion, and scaling up care support and treatment.

The Clinton Foundation is a key partner in India's National AIDS Control Programme, supporting training on AIDS treatment as well as drugs for the treatment of children with HIV. In the last five years, the Clinton Foundation has contributed to improved competition and lower prices in ARV markets by providing technical assistance to help Indian generics' producers find efficiency savings and improve their technical processes.