[Ip-health] Brazilian Minister of Health (Temporão) says that CL on Aids drug was a specific case..

[MSF Michel Lotrowska]

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Temporão says that the compulsory license of of an anti-Aids medicine was a
specific case





By Gabriel Araujo


Newspaper "O Globo" (July 10th 2007)




Novartis spends R$ 223 millions to expand plant in Resende (RJ) and São
Paulo



RESENDE. The Ministry of Health, José Gomes Temporão, said yesterday in
Resende, south of Fluminense (State of Rio de Janeiro) to an audience of
pharmaceutical companies representatives, that the issuance of a compulsory
license on efavirenz, produced by the laboratory Merck Sharp & Dohme and
used for Aids treatment was a "specific case".



The ministry is trying to dismiss the suspiciousness of representatives from
the sector.



"The decree for the compulsory licensing was an “isolated” case. The
government was obliged, because of the intransigence of the company, to take
this measure" affirmed the Ministry, who participated yesterday at the
inauguration of the expansion of two plants of the Swiss company Novartis,
one in Resende and the other in Taboão da Serra (SP).



In the plant expansions, the company invested R$ 223 millions, and it
expects to triplicate its volume of exportation until 2012. 400 directs jobs
will be created. Novartis provides to government programs, under patent
protection, three medicines for treatment of Leprosy, cancer and
hypertension.



This was the first meeting between Temporão and a CEO of a pharmaceutical
company after the decree was signed by the president Luiz Inácio Lula da
Silva, two months ago, allowing Brazilian laboratories to produce a generic
of efavirenz. After a meeting with the Minister, the Novartis world
president, Daniel Vasella, was received, yesterday night, by Lula, in
Brasilia.



Dismissing the possibility of new issuances of compulsory licenses, Temporão
urged industry to invest in the country: "The government position is not of
intransigence. Come to Brazil and you can trust in the President Lula".



According to Temporão, the compulsory license just happened in regard of the
the difficulty to achieve an price reduction agreement of the most used
medicine to treat Aids in the country. Before signing the decree, the
Ministry organized eight meetings with executives from the company. Merck
was selling the tablet of efavirenz at the price of US$ 1,59, while in
Thailand the price is US$ 0,65.



The Corporative Director of Novartis, Nelson Mussolini, confirmed the
apprehension of the pharmaceutical market. He criticized the compulsory
license: "There is a worry, and we do believe that the compulsory license
cannot be used in a confused way (atabalhoado?)", said Mussolini, pointing
out, however, that the country's legislation is consistent with definitions
established in the World Trade Organization.



Mussolini refuted the idea that the government's attitude had a negative
impact on the plans to expand investments in the country.



(free translation Gabriela Chaves and Michel Lotrowska)

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