[Ip-health] Embarrassing: Ken Adelman and USA for Innovation's Latest Untruths

[robert weissman]

Embarrassing: Ken Adelman and USA for Innovation's Latest Untruths

Robert Weissman
Essential Action
May 9, 2007

Ken Adelman and USA for Innovation are rapidly expanding from the
terrain of the shameful to the simply embarrassing.

Today, USA for Innovation has released what it calls ThaiLies #3.

Actually, they have switched from alleging that Thailand is "lying" to
claiming Thailand is spreading "myths." The link to thailies.com still
works, but the operational site is now thaimyths.com. Perhaps the
hypocrisy of Ken Adelman calling others liars was unsustainable.
(<http://www.huffingtonpost.com/robert-weissman/ken-adelmans-new-lies_b_47864.html>)

In any case, today's "myth" is that "Thailand is just trying to lower
the cost of western medicines." The "fact," according to USA for
Innovation, is that "Drug manufacturers have slashed the cost of drugs
shipped to Thailand."

In particular, says USA for Innovation, Chicago drug giant Abbott cut
its prices on the important HIV/AIDS drug Kaletra from $2200 to $1000.

Those who have been following this controversy know that Abbott reduced
its prices only AFTER Thailand issued the compulsory license. In fact,
one of the great benefits of the Thai compulsory license was that  low
and low-middle-income countries around the world benefited almost
immediately, because it spurred the Abbott price reduction.

Adelman and USA for Innovation are embarrassingly uninterested in
anything resembling facts, however, despite their harsh rhetoric.

The USA for Innovation fact sheet asserts that Abbott's price reduction
preceded Thailand's compulsory license, referencing a column written in
the Financial Times by conservative University of Chicago law professor
Richard Epstein. The excerpt from USA for Innovation:

A leading university of Chicago scholar pointed out that Abbott
laboratories cut its price on a cutting edge AIDS drug by over 50
percent. "[N]o drug company looks like an unreasonable hold-out when it
has already made significant price concessions, such as those made to
Thailand, where the price of an annual course of treatment for Kaletra
has dropped from $2,200 to $1,000, even before the recent showdown."
(Richard A. Epstein, "AIDS Drugs," FT.com, 5/7/07)

Here are the actual relevant dates:

January 27, 2007. Thailand issues compulsory license on Kaletra.

April 10, 2007. Abbott announces its price reduction to $1,000 for low-
and low-middle-income countries.
(<http://www.abbott.com/global/url/pressRelease/en_US/60.5:5/Press_Release_0442.htm>)

One might at least expect USA for Innovation to check the Wall Street
Journal editorial pages for clarity on such matters. The Journal
editorial writers actually criticized Abbott for its price reduction, on
the very grounds that it came in response to the Thai compulsory
license. "Earlier this month, Thailand browbeat Abbott
Laboratories into reducing the price of an HIV/AIDS drug, Kaletra, by
threatening to seize its patent." (Abbott's Bad Precedent, Wall Street
Journal, April 30, 2007).

--------

Today's release from USA for Innovation --

USA For Innovation Launches Thai Myth #3

WASHINGTON, May 9 /PRNewswire-USNewswire/ -- ThaiMyths.com
(http://www.thaimyths.com/), a project of USA For Innovation, unveiled
Myth #3 today to draw attention to the deceit in Thailand's decision to
steal American and European innovation.  Each business day for two weeks
from May 7 -- May 18, ThaiMyths.com will release additional information
regarding one of the ten recent myths by the Health Minister Mongkol na
Songkhla.

   Today's Myth: #3 of 10

   Myth: Thailand is just trying to lower the cost of western medicines.



Fact: Thailand places high tariffs on prescription drugs and
pharmaceutical ingredients, while receiving fair prices for safe,
approved western medicines.

FACT: The Thai Government Places High Tariffs On Ingredients For
Prescription Drugs As Well As Finished Pharmaceutical Products.

According To A World Health Organization commission study, Thailand
places a weighted average tariff rate of 18 percent on finished
pharmaceutical products. A study by WHO's Commission on Intellectual
Property Rights, Innovation and Public Health found that Thailand places
a weighted average tariff of 18% on finished pharmaceutical products --
a tariff that brought the Thai government over $67.2 million in revenue
during 2001 alone. (Commission On Intellectual Property Rights,
Innovation And Public Health, Accessed 5/8/07)

FACT: Drug manufacturers have slashed the cost of drugs shipped to Thailand.

A leading university of Chicago scholar pointed out that Abbott
laboratories cut its price on a cutting edge AIDS drug by over 50
percent. "[N]o drug company looks like an unreasonable hold-out when it
has already made significant price concessions, such as those made to
Thailand, where the price of an annual course of treatment for Kaletra
has dropped from $2,200 to $1,000, even before the recent showdown."
(Richard A. Epstein, "AIDS Drugs," FT.com, 5/7/07)

FACT: Not all countries abusing trade regulations do so for humanitarian
reasons.

The University Of Chicago's Richard Epstein: "Bargaining abuse is not
the unique preserve of nations. It can also originate in nations whose
own economic houses may not be in order." (Richard A. Epstein, "AIDS
Drugs," FT.com, 5/7/07)

About USA For Innovation and ThaiMyths.com

USA For Innovation is a non-profit organization dedicated to the
protection of intellectual property and continued innovation around the
globe. USA For Innovation educates decision makers, the media and
general public about threats to innovation. ThaiMyths.com is a project
of USA For Innovation intended to expose the web of deceit by Thailand's
Health Ministry.  For additional information, please contact us at
866-646-8668 or john@usaforinnovation.org.

First Call Analyst:
FCMN Contact:


Source: USA For Innovation


CONTACT:  USA For Innovation, +1-866-646-8668, john@usaforinnovation.org

Web site:  http://www.thaimyths.com/