For now, artemisinin costs about US$400 per kilogram, and the semi-synthetic version is unlikely to be much cheaper. But Sanofi announced at the Nairobi meeting that it plans to produce 60 tonnes of the compound in 2014, alarming A. annua growers and extractors, who said that the new supply could take more than one-third of their market. Sanofi and its partners are adamant that for the next several years, semi-synthetic artemisinin will be deployed only to smooth out market fluctuations, and will be sold at a ‘no profit–no loss’ price of $350–400 that is unlikely to undercut other suppliers. The conference “almost felt like a price-fixing meeting”, says Keasling wryly.
He is convinced that, eventually, the price could be lowered by making the fermentation process more efficient. Fitful funding is all the more reason to provide cheaper ACTs, adds Keasling, who would like all such drugs to be made using the semi-synthetic process. But he agrees that gradual introduction is necessary to avoid driving conventional producers out of business — at least “until we have enough installed capacity to take over the entire world supply”. ■
For now, artemisinin costs about US$400 per kilogram, and the semi-synthetic version is unlikely to be much cheaper. But Sanofi announced at the Nairobi meeting that it plans to produce 60 tonnes of the compound in 2014, alarming A. annua growers and extractors, who said that the new supply could take more than one-third of their market. Sanofi and its partners are adamant that for the next several years, semi-synthetic artemisinin will be deployed only to smooth out market fluctuations, and will be sold at a ‘no profit–no loss’ price of $350–400 that is unlikely to undercut other suppliers. The conference “almost felt like a price-fixing meeting”, says Keasling wryly.
He is convinced that, eventually, the price could be lowered by making the fermentation process more efficient. Fitful funding is all the more reason to provide cheaper ACTs, adds Keasling, who would like all such drugs to be made using the semi-synthetic process. But he agrees that gradual introduction is necessary to avoid driving conventional producers out of business — at least “until we have enough installed capacity to take over the entire world supply”. ■
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