So in that sense, it's very significant that these prices are coming down. Many AIDS activists were unimpressed by Merck's news, which was first reported yesterday in the Wall Street Journal. Some voiced skepticism about the company's claim that it was cutting its prices to the cost of manufacturing. Others complained about Merck's participation in a lawsuit against a South African law that would allow the importation of even cheaper generic drugs manufactured in other countries. Until yesterday, Merck was the most secretive of the AIDS drugmakers in describing its concessionary offers to poor nations.
Public disclosure carries political risk.
Like most of the industry, Merck earns more than half its profits in the United States alone, and it fears a consumer rebellion in wealthy nations as buyers learn that they are paying nearly 10 times the rock-bottom price. Drug companies, backed by public health agencies, argue that the wealthy nations should willingly tolerate that price spread because AIDS is pandemic overseas. Merck's announcement marked a notable retreat from another important element in the industry's strategy for protecting its patents and profits. In an interview last week, Piot said he had realistic hopes that the patent holders would slash prices in the developing world to the levels of their most aggressive generic rivals. News Jobs AP Shopping Archives Entertain.