[Ip-health] Folha de Sao Paulo: Brazil announces it will break patents for AIDS drug

[Mike Palmedo]

 From the Health GAP list -

Translation from Folha de Sao Paulo...24/06/2005 - 18h53

http://www1.folha.uol.com.br/folha/cotidiano/ult95u110423.shtml

Brazil announces it will break patents for AIDS drug

PATR=CDCIA ZIMMERMANN
da Folha Online
24/06/2005 - 18h53

The Brazilian Government announced this Friday that it will break the
patent for
an AIDS medication, Kaletra. Currently, it is being provided by the
government
for approximately 23,400 patients across the country. This is the first
time in
the world that the patent for an AIDS medication has been broken,
according to
the Ministry of Health.

The United States has already broken patents for a drug used to treat
anthrax,
following the terrorist attacks in 2001, and China has for Viagra.

Speaking for the Ministry of Health, signed this Friday, the government
declared
the patent for Kaletra in the public interest and declared its compulsory
licensing of the anti-retroviral Kaletra, made by the North American
laboratory, Abbott.

The drug will be produced by the Farmanguinhos laboratory of the Oswaldo
Cruz
Foundation, beginning next year and for exclusive purchase by SUS (the
Sistema
Unico da Saude [Brazil=B4s Universal Health System]). The Brazilian
government=B4s
contract with Abbott for supply of Kaleta extends until May, 2006.

The Minister of Health, Humberto Costa, said that the compulsory license
will be
adopted because Abbott has not agreed to a deal to reduce drug prices
through a
voluntary license. The negotiations were initiated in March of this
year, but
no progress was made.

The drug, which is sold by Abbott in at US $1.17 a unit, will cost US $0.68
through Farmanguinhos.

Abbott will be notified by the Brazilian government and will have ten
days to
respond regarding the decision.  To avoid breaking of the patent, the
laboratory would have to agree to provide the medication for the price
given by
Farmanguinhos.

According to Costa, the negotiations with Merck and Gilead about voluntary
licensing for the drugs Efavirenz and Tenofivir are in process, but that
he is
expecting positive outcomes regarding the possibility of an agreement being
made.

Savings

This measure represents a savings of R$ 130 million per year to the
Brazilian
government, which should spend, just this year, R$ 945 million in AIDS
medications.

The ministry made clear, in the meantime, that the compulsory license
does not
equal piracy. The government will pay royalties of 3% above the value of
theproduct made by Farmianguinhos.