Using the levy in order to Using the levy in order to finance recurring expenditures : finance recurring expenditures :

the case of the International the case of the International Drug Purchase Facility-UNITAIDDrug Purchase Facility-UNITAID

Meeting of experts on the solidarity contribution on airline tickets

29 June 2006 - PARIS

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Universal access to treatments in 2010: How can we fulfil our commitments?

Despite our efforts, there is still more to be done:

Only slightly more than 1 million people have access to anti-retroviral treatments while 6.5 million are in urgent need of treatment.

Very ambitious commitments have been made:

The international community in September 2005 renewed the commitment that was made at the Gleneagles G8 Summit « to provide as close as possible to universal access by 2010 for all those in need ».

These commitments raise three challenges:

Obtaining additional resources to fight these three diseases

Strengthening infrastructures and health systems

Increasing access to treatments in a global market

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UNITAID / IDPF needs sustainable and predictable ressources so as to: Broaden the funding supply:

Only sustainable and predictable resources can provide the pharmaceutical industry with solvent markets over the long term and secure the launch of large-scale programmes for access to treatment in developing countries.

Improve the security and the solvency of demand:

To increase the production of low-cost drugs, it is essential to secure markets for the pharmaceutical industry over the long term and to diversify supply.

Encourage price reductions and diversification of supply:

Prices are still too high for drugs for developing countries (second-line anti-retroviral drugs, anti-malarial treatments). Some treatments are not adapted to needs (insufficient formulae for paediatrics, combined set drugs).

Ensure the quality of drugs

The quality of drugs should meet international requirements.

UNITAID / IDPF will be financed either by the proceeds of international solidarity levies, or by perennial budgetary contributions

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Functional Arrangements of UNITAID / IDPF

The UNITAID / IDPF can ensure:

For beneficiary countries: an uninterrupted supply of pre-qualified products at reduced prices.

For the pharmaceutical industry: demand forecasting to guide production, guaranteed funding orders, quality assurance in order to better adapt products to needs.

The UNITAID / IDPF could:

Negotiate competitive prices for countries or institutions buying drugs.

Group purchases wherever this solution has advantages and where a mandate has been given to do so.

Prevent the interruption of supply by establishing buffer stocks.

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UNITAID / IDPF has reached a critical milestone

Brazil, Chile, Norway and France officially launched the UNITAID / IDPF in New-York at the United Nations on June 2nd 2006. A Joint Declaration was issued outlining the mission, key principles and objectives of the UNITAID / IDPF.

Since the Joint Declaration in New-York on June 2nd 2006, the IDPF – UNITAID has achieved significant progress in operationalizing its activities.

UNITAID / IDPF will focus on targeted actions where it can reach the greatest impact .

There is a consensus among partners on the urgency to scale up efforts in order to increase access to treatment to fight HIV–AIDS, malaria and tuberculosis.

International organizations, NGOs and private foundations (WHO, UNICEF, the Global Fund, the Clinton HIV/AIDS Initiative, UNAIDS, the Stop TB Partnership, Roll Back Malaria, MSF…) have worked jointly in order to make a first estimate of the needs and how UNITAID / IDPF could possibly help.

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UNITAID / IDPF : next steps

UNITAID / IDPF will propose in September a definitive governance structure including:

The process and procedures. The organization chart and accompanying baggage that show who reports

to whom and how tasks are both divided and integrated. The staffing. Indications on the way managers will collectively behave with respect to

use of time, attention, and symbolic actions. The shared values that will drive the organization and will be common to

most of its members.

Official launching of UNITAID / IDPF is to be announced at the time of the UN General Assembly in mid-September.