[Ip-health] Kaiser News: Thailand Will Maintain Compulsory Licenses for Kaletra, Efavirenz, Despite Companies' Drug Price Reductions, Health Minister Says

[Mike Palmedo]

http://www.kaisernetwork.org/daily_reports/rep_index.cfm?DR_ID=44254

Thailand Will Maintain Compulsory Licenses for Kaletra, Efavirenz,
Despite Companies' Drug Price Reductions, Health Minister Says

Kaiser News Network
Apr 16, 2007

Thailand will maintain compulsory licenses for Abbott Laboratories'
antiretroviral drug Kaletra and Merck's antiretroviral Efavirenz,
despite both companies' decision to reduce the cost of both drugs, Thai
Health Minister Mongkol Na Songkhla said on Thursday, Reuters Health
reports (Wong-Anan, Reuters Health, 4/12). Mongkol in January signed the
compulsory license, which allows Thailand to produce a lower-cost
version of Kaletra, into law. Abbott in March announced that it had
withdrawn applications to sell seven new drugs in Thailand in response
to the compulsory license. The company on Tuesday said it plans to
reduce the cost of Kaletra in Thailand and more than 40 low- and
low-middle-income countries by more than half. The company said it will
provide Kaletra in the countries for $1,000 per patient annually, which
is less than the cost of generic versions of the drug, instead of the
current price of $2,200. Kaletra costs more than $7,500 per patient
annually in the U.S., and Abbott provides the drug at a cost of $500 per
patient annually in 69 of the poorest developing countries, including
all of Africa (Kaiser Daily HIV/AIDS Report, 4/11). Merck also offered
to reduce the price of its antiretroviral Efavirenz to $23 per bottle,
but the government can purchase a generic version of the drug from
India-based drug makers for about $20 per bottle (Kaiser Daily HIV/AIDS
Report, 3/28). Many countries -- including Brazil, Indonesia, Malaysia,
Mozambique and Zambia -- have broken or have threatened to override
patents on antiretrovirals and drugs for other infectious diseases, the
International Herald Tribune reports.

Comments

Thai officials said Wednesday that the government had not yet decided if
the price reduction of Kaletra would forestall compulsory licensing
(Fuller, International Herald Tribune, 4/11). "Compulsory licensing is
the only way we could attract them to sit down and talk with us over
price reduction," Mongkol said, adding, "We will continue to talk with
them until we reach the point where we can optimize the accessibility of
the drugs to the Thai people" (Reuters Health, 4/12). Jennifer Smoter, a
spokesperson for Abbott, said, "Thailand has chosen to break patents on
numerous medicines, ignoring the patent system," adding, "As such, we've
elected not to introduce new medicines there" (International Herald
Tribune, 4/11). Some AIDS advocates said Abbott will have to go beyond
its offer to reduce the price of Kaletra to the governments of more than
40 low- and low-middle-income countries. Paul Cawthorne, head of mission
of the Medecins Sans Frontieres, said the company had not included in
its offer an updated version of Kaletra, called Aluvia, which does not
require refrigeration. "Abbott has to do more," Cawthorne said, adding,
"What we need to see are these new heat stable Aluvia tablets going into
people's mouths, and then we will be happy" (Reuters Health, 4/12).




--
Mike Palmedo
Research Coordinator
Program on Information Justice and Intellectual Property
American University, Washington College of Law
4910 Massachutsetts Ave., NW Washington, DC 20016
T - 202-274-4442 | F 202-274-0659
mpalmedo@wcl.american.edu