Reeling from its growing number of AIDS victims, the Chinese government is requiring a mass production of generic drugs by domestic drug-makers -- a move also meant to push forward the further price reductions among the foreign patent makers.

The first batch of AIDS drugs shipped Sunday from Shanghai Desano Bio-pharmaceutical Co., the first local firm to obtain a production license in September for a generic version of an AIDS formula. The drugs headed for Henan Province, which is suffering from a large AIDS population.

These drugs, which complete two cocktail therapies, can supply 3,000 patients with one year's use. The therapies will cost the patient from 3,000 yuan (US$361.4) each year to more than 4,000 yuan, a company official said. One year of cocktail therapy based on imported drugs, however, may cost 30,000 to 50,000 yuan a year.

The current prices of imported drugs, though already much lower than the 100,000 yuan tag a year ago, remain prohibitively expensive for most patients who are living in China's rural areas.

"The city will continue to support the national scheme that promote the home-made AIDS drugs instead of the expensive imported ones," Yang Xiaodu, vice mayor of Shanghai, noted yesterday at a ceremony at Desano to market its products.

These drugs were bought by the State Economic and Trade Commission, according to Desano officials. The central government has ordered more production for the one-year-use of 2,000 patients from Desano and more from the Northeast Pharmaceutical Group in northern China.

The country's AIDS-drug market was dominated by imported products prior to August when Northeast Pharmaceutical was granted a license to produce and sell a formula.

Since then, the government has been shortening the approving procedure on domestic generic versions of AIDS drugs. A dozen of domestic drug-makers are queuing up for the drug administration to approve their products.

The authorities said they are considering to lower tariffs on imported drugs while asking foreign makers to further cut down their prices.

Late last year, the Ministry of Health invited a 5-million-yuan bidding for AIDS drugs, aiming to lower costs for patients. Merch Sharp & Dohme, GlaxoSmithKline and Bristol Myers Squibb submitted the tender. Winners of the bidding have yet to be announced.

The Chinese Center for Disease Control and Prevention estimated the number of AIDS patients on China's mainland, currently between 80,000 and 100,000, will possibly double in five years.

Also on Sunday, Desano donated AIDS drugs for a one-year use of 10 patients each to Huashan Hospital and Shanghai Infectious Diseases Hospital, which are appointed for the treatment of AIDS patients.

(Eastday.com January 27, 2003)