Case | HBS Case Collection | February 2002

Fighting AIDS and Pricing Drugs

by John T. Gourville

Abstract

In early 2001, makers of AIDS drugs were suing to prevent developing countries from violating their patents. The issue was driven by price. The developing countries could not afford the market price for these drugs. At the same time, the drug companies were reluctant to sell drugs at or below cost in one country and at 10 to 20 times cost in another country. Using a series of published articles, this case outlines the pressures facing the drug companies and asks the question, "How should they respond?"

Keywords: Developing Countries and Economies; Patents; Price; Strategy; Globalized Markets and Industries; Pharmaceutical Industry;

Citation:

Gourville, John T. "Fighting AIDS and Pricing Drugs." Harvard Business School Case 502-061, February 2002.