[Ip-health] Bayer supports Abbott's move in Thailand

[Benjamin Krohmal]

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[ Picked text/plain from multipart/alternative ]
Bayer Says Abbott-Thai Dispute Dangerous
Thu Mar 15, 2007 5:01 PM BST

LEVERKUSEN, Germany (Reuters) - Germany's Bayer <BAYG.DE> supported
Abbott Laboratories' <ABT.N> decision to stop launching new drugs in
Thailand in protest at the army-backed government's move to override
international drug patents.

"I fully support Abbott and I fully support the very strong stance
the industry is taking. This is not the way forward," said the head
of Bayer's healthcare unit, Arthur Higgins.

"It is a very dangerous development," Higgins added on Thursday.

"I do not believe it is in the long-term interest of the Thai people
because Abbot has already said they will not bring any other new
products to the Thai market. That is what will happen."

He did not say whether Bayer would also halt launches in Thailand if
one of its drugs was affected. It generated 2005 sales there of 36.3
billion Thai baht ($1.10 billion).

Abbott's decision came after Thailand declared a "compulsory license"
in January allowing it to make or buy generic versions of Abbott's
Kaletra to treat HIV/AIDS.

Drug companies are sensitive to such moves because they have invested
hundreds of millions of dollars into research and development of new
drugs before they come to the market.

Abbott said it has elected not to introduce new drugs in Thailand
because the government has chosen to break patents on numerous
medicines, but the company said the move would not affect Abbott
drugs already on sale in the country.

Abbott is believed to be the first pharmaceutical maker to withhold
new drugs from Thailand since the government shocked drug makers late
last year with its first compulsory license, for Efavirenz, an HIV-
AIDS treatment made by Merck & Co <MRK.N>.

Thailand also issued one for Plavix, a heart disease medicine made by
Bristol-Myers Squibb <BMY.N> and Sanofi-Aventis <SASY.PA>, the first
time a developing nation has done so for such a treatment.

Although legal under world trade rules, the licenses, which allow
governments to make or buy generic versions of medicines needed for
public health measures, stunned drug makers who received no prior
warning.

Malaysia and Indonesia were the first in southeast Asia to issue
licenses for AIDS drugs three years ago, but Thailand has gone
further in challenging Big Pharma by targeting other drugs.

Health Minister Mongkol na Songkhla told Reuters last month he was
studying whether to issue compulsory licenses for other "essential
medicines" to fight cancer, heart disease and other leading causes of
death in Thailand.

Benjamin Krohmal
Coordinator - Project on Medical Innovation
Knowledge Ecology International
Tel: +1-202-332-2670 ex. 14
Fax: +1-202-332-2673
ben.krohmal@keionline.org