Dear Daniel Vasella, Chairman and CEO of Novartis

We heard from our Korean friends that you Novartis filed two lawsuits against the Korean government’s directive to lower the price of Gleevec, a leukemia treatment pill, on September 2, 2009: "provisional disposition for validity stop of drug price reduction" and "annulment lawsuit of drug price reduction disposition". 

And we worried about that following situations seriously infringe on Korean people’s right to access to medicine.

Your blockbuster, Gleevec was scheduled to be sold at a 14% lower price from September 15th 2009 in Korea. However, as Seoul Administrative Court accepted the filing of "provisional disposition for validity stop of drug price reduction" on September 11th, the current price of Gleevec will be valid until the lawsuit is settled down there. One of your authorities commented at the interview with a Korean medium that "Novartis cannot follow the government order by the Minister of Health, Welfare and Family affairs that the price should be reduced just because it is too expensive."

In 2008, NGOs and citizens (beneficiaries of National Health Insurance) in Korea submitted an appeal to reduce the price of Gleevec and to introduce Gleevec in a higher dose (400 mg) rather than the current one with 100 mg.

Price of Gleevec was established in 2001 based on the price in A7 countries (US, UK, Germany, France, Switzerland, Japan and Italy), completely ignoring the difference in economic capacity between A7 and Korea. And the price of Sprycel, the next new drug for leukemia produced by BMS, was also set based on Gleevec price, which was prohibitive for patients suffering from leukemia. The other reason for which you are to blame is that Gleevec in 400mg is not provided in Korea. Gleevec in a higher dose (400mg) increases convenience thanks to fewer takes per day and reduces financial burden as well as possible iron intoxication. However, Gleevec in 400 mg is not found in Korean market only because you Novartis, concerned about reduction in profits, does not supply it in Korea.

Experts in Korea claimed that the price of Gleevec should be lowered by at least 37.5% on the grounds of: 1) financial burden from the high price of Gleevec on the National Health Insurance; 2) reduction in imports duties; 3) reduction in subsidy to patients by your company from 10% to 5% after copayment in NHS decreased from 10% to 5%; and 4) the cost-effectiveness compared to the new drug, Sprycel. Notwithstanding this claim, the Ministry of Health, Welfare and Family Affairs decided to order a 14% price reduction for Gleevec, which led the Ministry to be bombarded with fierce criticisms by many individuals and organizations. Still unsatisfied with the reduction, though ameliorated from 37.5% to 14% by the Ministry, you launched the lawsuit against the government order only to maintain the high price of Gleevec in Korea.

Your company has been high-handedly doing whatever needed to sustain monopolistic market power and keep the uniform price policy all over the world. Market for medicine and drug pricing policy in Korea have been violated by arrogant monopolistic behavior of your company as well as Roche, which is another transnational pharmaceutical company threatening lives of patients with HIV/AIDS by enforcing prohibitive price for Fuzeon. And, as with the usual cases in history, patients fall a victim to the great cause of profits.

We are thinking that you are going beyond one nation’s own sovereignty of supplying necessary medicines appropriately.

Supporting my Korean friend, we are strongly requesting you to do 

▶ Withdraw the suits right now

▶ Drop the Gleevec 100mg price more than 14%

▶ Supply the Gleevec 400mg immediately

Thank you for your attention.

Sincerely