Drug Maker To Slash Drug Costs In Third World Countries - America Waits their Turn

Drugmaker GlaxoSmithKline announced they are cutting prices for its drugs in the developing world.

Andrew Witty, CEO of GSK, said theywould cut the cost of drugs in the 50 poorest nations to 25% of price in the UK and US.

He also said the firm would share knowledge of patents and reinvest profits in local clinics.

Charities have long campaigned for such a policy as patents prevent cheaper generic versions of drugs.

Formulas and processes owned by GSK under patent will be shared with researchers and 20% of the firm's profits in the developing world will be reinvested in hospitals and clinics there.

Health campaigners have said more needed to be done but they welcomed the initiative.

Oxfam said an affordable HIV treatment, for instance, could stop 6,000 people dying every day in countries affected by the HIV/Aids epidemic.

Charity World Vision's director of advocacy Mike French said: "Slashing drug prices is good. But without the necessary health infrastructure many won't be able to access those drugs. Therefore, investment by GSK, along with the knowledge pooling, make this a landmark announcement.

"This is a gutsy move in a commercial world. Witty has demonstrated a willingness to make saving lives a business goal along with making money." Courtesy The Guardian.