Access to medicines and South-South cooperation: a case study on joint drug price negotiations in South America

Abstract

This article aims to analyze joint negotiation of prices on high-cost drugs, which began in 2015 in the frameworks of the Southern Common Market (Mercosur) and the Union of South American Nations (USAN), with the participation of the Pan-Americana Health Organization (PAHO). This is a case study based on document research and in-depth interviews, describing the first face-to-face stage in the price negotiations led by the Mercosur Ad Hoc Committee on Drug Price Negotiations. The process resulted in the establishment of price caps in South America for darunavir and sofosbuvir. In the case of darunavir, there was a reduction in the global price, including the price in the Global Fund to Fight AIDS, Tuberculosis, and Malaria. In conclusion, price negotiation was successful in the above-mentioned cases, and participation by the PAHO Strategic Fund in the drug purchases streamlined their procurement and their availability in the countries.