[Ip-health] Cong Brown Q to NIH Dir.

[Sean Flynn]

This is the transcript of the question asked by Congressman Brown of NIH
Director Elias Zerhouni at yesterday's hearing of the Subcommittee on
Health:

As I mentioned in my testimony, the patented AIDS drug NORVIR was
discovered in the early 1990s by Abbott laboratories under a multi-year,
multi-million dollar grant from NIH.

By year-end 2001, Norvir had generated more than a billion in sales for
Abbott.  There is evidence to suggest the development costs borne by
Abbott for this drug were, in fact, minimal.

Norvir is sold for over $7,800 a year in the U.S., while the price is
less than $720 in Canada and elsewhere.

Despite the fact that NIH resources contributed to the development of
Norvir, its price has always been higher in the US than in any Western
European Country.  And in December, Abbott increased the US price by an
astounding 400%.

Because Norvir is typically used as a booster for other AIDS drugs, the
price of those drugs skyrocketed.  Abbott insulated its own
Norvir-boosted product, Kaletra, from the price increase, giving the
company a tremendous competitive advantage.

Over 200 organizations and physicians have asked both the FTC and the
Department of Health and Human Services to step in and do something
about this outrageous price increase.  My understanding is that the HHS
petition is currently pending in the Office of Technology Transfer at NIH.

These groups have requested a public hearing on this issue.  They
recently received a letter saying that representatives from NIH would be
glad to meet with them, AFTER a decision is made on the petition.

Dr. Zerhouni, I am concerned about that.  These groups want to make the
case regarding the viability of using Bayh Dole given the specific
patents on this product and other issues that make this case complex.

This is a very serious matter, and these groups deserve the opportunity
to make their case before a decision is made.  Will you grant them the
opportunity to make their case in a public hearing?