Daily HIV/AIDS Report
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- Date: Thu, 26 Apr 2007 07:39:14 +0800
Daily HIV/AIDS Report
Drug Access | U.S. Ambassador to Thailand Urges Government To Negotiate on Drug
Pricing, Compulsory Licensing With U.S. Drug Companies
[Apr 25, 2007]
U.S. Ambassador to Thailand Ralph Boyce on Monday after talking with Thai
Public Health Minister Mongkol Na Songkhla said compulsory licensing could be
avoided if the Thai government and international pharmaceutical companies work
to find a compromise on drug pricing, the Thai News Agency reports (Thai News
Agency, 4/23). The Thai government in November 2006 and January issued
compulsory licenses to produce lower-cost versions of Merck's antiretroviral
drug Efavirenz and Abbott Laboratories' antiretroviral Kaletra, respectively.
Since then, the government and drug companies have continued negotiations
(Kaiser Daily HIV/AIDS Report, 3/28). "We respect the Thai government decision
to issue compulsory licensing under" World Trade Organization regulations, but
"what we would like to see is the negotiations between the Thai government and
representatives of major drug companies," Boyce said. He added, "The result of
the talks may lead to those companies' decision to lower their price of the
drugs that will be affordable to all and that compulsory licensing may not be
needed." Mongkol said he plans to travel to the U.S. next month to talk with
trade officials and other agencies about the issue (Thai News Agency, 4/23).
Related News
In related news, HIV/AIDS advocates in about 20 countries have called for a
worldwide boycott of Abbott products over the situation in Thailand. Although
Abbott earlier this week offered to sell its antiretroviral Aluvia at a reduced
price in the country, some not-for-profits groups say the offer is superficial.
"Abbott has agreed to register Aluvia (for sale) only under the condition that
they (Thailand) stop the compulsory license, which is tantamount to blackmail,"
Brigitte Tenni of the Thai Network of People Living With HIV/AIDS said, adding,
"If we tolerate it now, other developing countries will be very intimidated to
issue compulsory licenses in [the] future." Abbott was not available for
comment, according to Reuters (Reuters, 4/25). Thailand's Pharmaceutical
Research and Manufacturer's Association recently called on the government for
increased dialogue with pharmaceutical industry representatives about the
country's generic drug program. "We need to work together in a spirit of joint
endeavor if we are to succeed in helping Thai patients," the association in a
statement said, adding, "There is so much more that can be provided to patients
by industry and government engaging in a dialogue that is focused on securing
better health outcomes in Thailand" (AFX/Forbes, 4/24).
Wall Street Journal Examines Drug Patent Debate
The Wall Street Journal on Tuesday examined the "tug-of-war" between Thailand
and Abbott over compulsory licensing and its effect on international drug
patents. According to the Journal, drug makers are "increasingly looking to
emerging markets to compensate for slowing growth" in the U.S., Europe and
Japan. Abbott's sales in the U.S. decreased by 7.5% last year to $11.5 billion
but grew by 10.9% on the international market to about $11 billion. However, the
company's "troubles" indicate that "cracking the new markets can be tough
because governments are driving a hard bargain on price." Several developing
countries -- including the Philippines, Indonesia and Kenya -- are considering
plans to reduce drug costs through compulsory licensing or price caps for
brand-name drugs, the Journal reports. Such plans "could threaten the ambitions
of drug companies in developing nations -- especially those such as Thailand
that are growing wealthier," according to the Journal (Hookway/Zamiska, Wall
Street Journal, 4/24).
http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=44477
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