[Ip-health] Brazil CL…

[Gaelle Krikorian]

May 4, 2007, 8:28AM
Brazil Expected to Break HIV Drug Patent

© 2007 The Associated Press

NEW YORK — Brazil's president Luiz Inacio Lula da Silva plans to
announce Friday that the country intends to bypass the patent
protecting the HIV drug Efavirenz because of a breakdown in
negotiations with the drug's maker Merck & Co., the AIDS Healthcare
Foundation said.

Brazil and the Whitehouse Station, N.J.-based drug maker have been in
negotiations for a lower-priced version of the drug. The country
asked Merck to reduce the price of the drug from $1.57 a pill to 65
cents.

Now, Brazil plans to issue a compulsory license under World Trade
Organization regulations to begin making or buying cheaper versions
of the drug, resulting in royalty payments to Merck, the foundation
said.

Recently, Thailand moved to break patents on Efavirenz and the HIV
Kaletra, which is made by Abbott Laboratories.

Merck spokeswoman Amy Rose said the company remained flexible and
open to negotiations, and had offered the Brazilian government a 30
percent discount on Efavirenz at $1.10 per pill.

"We would be profoundly disappointed if Brazil goes ahead with a
compulsory license," Rose said in an interview.