Mozambique is resticted in purchasing autonomy over ARVs.

In keeping true to his State of the Union Address, countries are beginning to receive the $15 billion administered through Bush's Emergency Plan for Aids Relief (Pepfar) program. One of these countries is Mozambique, and this BBC Article explores the stipulations connected to the $15 billion. Countries drawing funds from Pepfar, such as Mozambique, are only allowed to buy “FDA Approved” drugs. AAA-HAA! A barrier to entry emerges. It costs roughly $750 a year to buy the name brand antiretroviral drugs (ARVs), a fraction of the $9,600 to $12,000 a year it would cost in an OECD member country, which is a sum that is roughly double the $350-$450 a year cost for the generic ARVs. This is inefficient. The countries could treat almost double the number of patients if they were allowed to buy the generic ARVs. That is, it is only inefficient if you consider the countries most afflicted with AIDs as the principals. If you consider the US pharmaceutical companies as the principals, then the Pepfar program is the perfect regulation for them. It is quite interesting that the US FDA still has not started to approve generic ARVs. It restricts entry into the market and insures that the US pharmaceutical companies can act as “Price Setters” as opposed to “Price Receivers” based on the market price. Another case of a regulation benefiting the companies that are supposed to be monitored by the regulatory agency. Makes you wonder how much the US pharmaceutical companies paid in lobbying for this regulation.