Gilead Sciences will slash by half the price of its drug tenofovir, used in an anti-AIDS cocktail, Brazil's Health Ministry said. 

The deal will save annually 15.2 million dollars to include tenofovir in the cocktail of anti-retroviral drugs given HIV/AIDS sufferers.

"We are in negotiations with all of the producers of anti-retrovirals" for price cuts, Brazilian Health Minister Agenor Alvares said.

The deal not only guarantees a supply of the drug for Brazil, but also "brings an considerable savings that must be used in the acquisition of other drugs," said Alvares, who signed the deal with Joseph Steele, vice president of the US pharmaceuticals company.

Brazil began a program in 1996 to assure free treatment for all those infected with HIV/AIDS, resulting in a 40 percent reduction in deaths.

According to recent data, 170,000 Brazilians benefit from the program and distribution of 17 anti-AIDS medications, which cost the government 411 million dollars in 2005.

Eight of the 17 are manufactured in Brazil but the others are imported.

Since 2002 Brazil has pressed AIDS/HIV drug producers to cut prices. Last year they persuaded Abbott Laboratories to reduce the price on its drug Kaletra. - AFP