[Ip-health] Investors criticize Abbott

[Benjamin Krohmal]

http://www.signonsandiego.com/news/business/20070322-1216-abbott-
thailand-investors.html

By Theresa Agovino
ASSOCIATED PRESS

12:16 p.m. March 22, 2007

NEW YORK =96 Religious investors in Abbott Laboratories stock have
criticized the drug maker's decision not to introduce new products in
Thailand, saying the move risks the health of Thais, and asked it to
reconsider its decision.

Abbott announced the move earlier this month after Thailand said it
was going to break the patent on Abbott's AIDS drug Kaletra because
the price was too high.

Christian Brothers Investment Services and 13 other religious
investors with about $35 million in Abbott shares said they were
concerned that the company's actions might damage its reputation and
hurt earnings.

=93We believe the company is overlooking risks that can have a serious
effect on brand, its relationships with patients, and ultimately,
shareholder value,=94 the group said in a statement.

Abbott's move has also been condemned by some public health groups
such as Doctors Without Borders.

Abbott has withdrawn its applications in Thailand to register a new
formulation of Kaletra as well as six other medicines including
Humira for rheumatoid arthritis, pain killer Brufen and antibiotic
Abbotic. The investors, which all belong to the Interfaith Center on
Corporate Responsibility (ICCR), noted that the new formulation of
Kaletra represents an important advancement because it doesn't have
to be refrigerated or taken with food.

=93The Thai government has chosen to limit access to medicines by
breaking patents and discouraging companies like Abbott from bringing
new medicines forward there. This matter is about intellectual
property and the integrity of the patent system,=94 Abbott spokesman
Melissa Brotz said in a statement. =93Patients in Thailand continue to
have access to Abbott medicines currently on the market there.=94

Abbott shares fell 8 cents to $54.60 in afternoon trading on the New
York Stock Exchange.