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UN INTRODUCES DRUG-PURCHASING PROGRAM

September 20, 2006

The United Nations and French officials yesterday officially launched UNITAID, the International Drug Purchase Facility, which will be led by France, Norway and the UK, among others. UNITAID is being established as to increase access to treatments for HIV/AIDS, malaria and tuberculosis in countries with high incidence of disease.

The purchase of drugs will be funded by an international airplane-ticket solidarity levy, which was introduced by French President Jacques Chirac and adopted at the Paris Conference on Innovative Financing for Development earlier this year.

By guaranteeing long-term, predictable revenues from the levy, UNITAID will negotiate multiyear, large-volume purchasing programs with pharmaceutical companies. The aim is that drugmakers will have an incentive to increase their production capacity and accelerate development of new pediatric formulations. Additionally, the initiative will work to boost the marketing of generic drugs by accelerating World Health Organization prequalification and facilitating distribution.

France is the first country to implement the levy. It is expected to raise some ⁈200 million a year. In France, the airplane-ticket levy will vary according to the flight destination and travel class: for domestic and intra-European flights, the rate will be ⁈1 per passenger in economy class and ⁈10 par passenger in business and first classes; for other flights, the rates will be four times higher.