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Last year, the HistPhil blog put up a post by Tamara Mann Tweel about a now-published report we commissioned her to work on, regarding the Clinton Health Access Initiative (CHAI)’s role in global price drops for antiretroviral drugs (which can be crucial in treating HIV/AIDS).
Antiretroviral drugs (ARVs) went down from 10,000 – $15,000 per person per year to $140 per person per year between 2000 and 2005. This price drop inspired governments and international bodies to purchase ARVs and administer therapy to millions of individuals stricken with HIV/AIDS.
While the Clinton Foundation often receives credit for the entirety of the ARV price drop, my report affirmed scholarship that claimed the price drop actually occurred in three stages. The first, from $15,000 per person per year to approximately $1000 per person per year in specific cases, can be attributed to activists persuading pharmaceutical companies to offer philanthropic prices to discreet pilot projects; the second price drop, from approximately $1000 per person per year to approximately $350 per person per year, can be attributed to the active creation of an international generic drug market; and the final drop, from $350 to $140, can be attributed to deliberate market interventions into the generic market by the Clinton Health Access Initiative (CHAI).
As discussed in the full report, this three-stage price drop corresponded to a massive increase in the purchases of antivirals (especially by governments and nonprofits); we haven’t specifically estimated the deaths averted by this development, but feel confident that it qualifies as the sort of hit we’re interested in.
Read more about the Clinton Health Access Initiative Open case study by Holden Karnofsky at Open Philanthropy Project