Price Discrimination saves lives: Glaxo's AIDS drugs

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Some 28 shipments [of low-priced AIDS drugs] were diverted from African countries to Paris and Brussels, then moved to Antwerp, where the customs officers noticed something was amiss. The drugs then moved into the normal wholesale chain and were sold at European prices - up to £3.80 a tablet instead of the 50p Glaxo charges in Africa.

If Glaxo cannot prevent this kind of arbitrage, they may move to a uniform price which would price much of Africa out of the market.