Abstract
The worldwide HIV/AIDS epidemic has generated intense criticism of pharmaceutical drug prices, a natural consequence of the industry's unique cost structure. Many people have proposed that the industry adopt what might be called a stakeholder model in place of the traditional profit-driven model. However, the rapid drop in HIV drug prices, combined with generic entry and de facto abandonment of patent rights, has revealed the extremely limited role of drug prices and access in the face of fundamental problems in infrastructure, prevention, and other essential elements in battling HIV/AIDS. Adoption of a stakeholder approach is likely to undermine essential research and development while doing little to curtail the HIV/AIDS epidemic.
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