[Ip-health] Thais warned by Eur Com on drug pricing pressure

[Sarah Rimmington]

http://www.ft.com/cms/s/ad6e844a-46a5-11dc-a3be-0000779fd2ac.html


    Thais warned on drug pricing pressure

Financial Times
By Andrew Bounds in Brussels

Published: August 9 2007 22:01 | Last updated: August 9 2007 22:01

Thailand has been warned by the European Commission against moves to
force drugmakers to drop prices for poor patients or lose sales, adding
to US pressure over patent protection.

Peter Mandelson, the trade commissioner, has written to Bangkok to
protest against its consideration of a broad use of compulsory licences,
allowing it to import cheaper generic versions of branded medicines
produced by western companies.

Thailand was the first middle-income country to break the patent on a
medicine to treat a non-infectious disease and to threaten compulsory
licences for an array of other such drugs.

The EU and US protested formally in February when Bangkok suspended the
patents of three drugs treating HIV/Aids and heart conditions. The US
also threatened retaliatory action, placing Thailand on a =93watch list=94
for intellectual property infringement.

Mr Mandelson=92s letter, seen by the Financial Times, says Bangkok =93may b=
e
taking a new approach on access to medicines=94. It says the military
government has =93stated that if drug companies wish to do business in
Thailand they should offer their drugs for no more than 5 per cent above
the generic cost.

=93This approach is a matter of concern for the European Union and would
be detrimental to the patent system, and so to innovation and the
development of new medicines.=94

Mr Mandelson says it would infringe World Trade Organisation
regulations, which allow countries to waive intellectual property rules
to fight emergency health epidemics once all other avenues have been
explored.

He encouraged Bangkok to negotiate with *Sanofi-Aventis
<http://mwprices.ft.com/custom/ft2-com/html-quotechartnews.asp?FTSite=3DFTC=
OM&q=3DSAN&searchtype&expanded=3D&countrycode=3Dfr&s2=3Dfr&symb=3DSAN&compa=
ny=3DNEW>*,
the Franco-German maker of Plavix, a drug for heart disease that has
been supplanted by cheap Indian imports.

Thailand has yet to reply to Brussels, but has denied these charges in
the past. =93It took the Thai Ministry of Public Health more than two
years, including discussions with pharmaceutical companies, before it
made its final decision,=94 the foreign ministry said in May.

The cheap drugs were only available through its public health system,
covering 48m poor Thais, it added.

=93Some 20 per cent of Thais can afford to pay out of their own pockets,
and more than 2m foreign patients will continue to pay market prices for
the original patented products. Out of the 300,000 patients with
coronary problems, less than 10 per cent have access to Clopidogrel,
also known as Plavix,=94 the statement said.

The pioneering approach of Mongkol Na Songkhla, health minister, has won
praise from the UN as well as health campaigners such as M=E9decins Sans
Fronti=E8res and Oxfam.

Mr Mandelson=92s tough language will antagonise the European parliament.
His letter was written in July just days before MEPs from all parties
called on the EU to back more flexible compulsory licensing rules at the
WTO.

Sanofi could not be reached for comment on Thursday. But pharmaceutical
companies say that patents ensure they can recoup investments on new
medicine and that without them research would dry up.

Copyright <http://www.ft.com/servicestools/help/copyright> The Financial
Times Limited 2007


--
Sarah Rimmington
Attorney
Essential Action
Washington, DC
Office: (202) 387-8030 x34
Mobile: (202) 422-2687
Fax: (202) 234-5176
www.essentialaction.org