[Ip-health] Thailand: 20 More Drugs in Pipeline for Possible Compulsory Licenses

[Sarah Rimmington]

http://www.ip-watch.org/weblog/index.php?p=3D806&res=3D1440_ff&print=3D0
Intellectual Property Watch

2 November 2007
Thailand: 20 More Drugs In Pipeline For Possible Compulsory Licences

By Sinfah Tunsarawuth for Intellectual Property Watch
BANGKOK - Thailand has in its pipeline about 20 more items of various
patented drugs that could be candidates for compulsory licences,
allowing the government to exercise its right over the patent owners to
cut prices and make the medicines more available to the public, a senior
Thai government official said.

The items include drugs for treating hypertension, diabetes and
hyperlipidaemia, said Sorachai Jamniandamrongkarn, a pharmaceutical
expert of the National Health Security Office, in an interview with
Intellectual Property Watch. He is the secretary of a National Health
Security Board=92s subcommittee that studies and names drugs for possible
compulsory licensing by the government.

=93They are drugs that are expensive but vital to the cure or treatment of
patients, Sorachai said. =93These are drugs essential for saving life.=94
However, he said that in the end, the action might be imposed on no more
than 10 items.

These 20 drugs are in addition to three drugs the government has already
issued compulsory licences for and another four cancer-treatment
medicines whose patent owners are likely to be subject to same kind of
enforcement by the Public Health Ministry, unless a price cut is agreed
soon.

Late last year, the Thai government first announced its use of
compulsory licensing on two patented anti-retroviral drugs for HIV/AIDS
patients (efavirenz, manufactured and marketed by Merck Sharp and Dohme
as Stocrin, and lopinavir/ritonavir, manufactured and marketed by Abbott
Laboratories as Kaletra) and another anti-coagulant for treating heart
disease (clopidogrel, manufactured and marketed by Sanofi-Aventis as
Plavix) (IPW, Public Health, 12 March 2007).

But only efavirenz has so far been imported by the Government
Pharmaceutical Organization from India for use with AIDS patients. The
Thai government has identified suppliers, also in India, of
lopinavir/ritonavir and clopidogrel and is working through the process
to import them.

That was the first time that the Thai government has resorted to
compulsory licensing to reduce prices of patented drugs, an action
permitted by section 51 of Thailand=92s Patent Act, without having to seek
consent from the patent owners. The law reflects the World Trade
Organization Agreement on Trade-Related Aspects of Intellectual Property
Rights (TRIPS).

The government negotiated for price cuts with the three companies before
issuing the compulsory licences, a measure that allows the government to
buy or produce drugs that are patented from other cheaper sources.

The efavirenz produced by Merck Sharp and Dohme used to cost 1,400 baht
(US$41) per a bottle of 30 pills, while the non-patented version
imported from India costs 550 baht ($16). The price of the patented
version has then come down to 770 baht ($22).

Sorachai said: =93Before we announced compulsory licensing, the companies
always said the price they offered us was already a =91no-profit price=92.
But after our enforcement, they cut their price further.=94

For the anti-coagulant, Sorachai said the patented one costs 72 Thai
baht ($2) per pill while the one that the Thai government is going to
import from India will cost only 1.10 baht (3 cents) per pill.

Apart from the three drugs, the government has singled out four more
medicines for treating various kinds of cancer for possibly issuing of
compulsory licences. The government plans to have another round of
negotiation with the patent owners soon before its official announcement
of the licences.

The four include docetaxel for treating lung and breast cancer,
manufactured and marketed by Sanofi-Aventis as Taxotere; erlotinib for
treating lung cancer, manufactured and marketed by Roche as Tarceva; and
imatinib for treating leukemia and gastrointestinal tumors and letrozole
for breast cancer, both manufactured and marketed by Novartis as Glivec
and Femara respectively.

These drugs are among a list of about 900 items of so-called national
essential medicines that will be available to Thai people for their
treatment and cure at reasonable price under government-sponsored health
insurance schemes. Thai government officials have insisted that
compulsory licensing would be enforced on patented drugs used under
these insurance programs only, and not for any commercial sale.

Sorachai said Thailand had tried to impose the measure on patented drugs
before. =93But we failed since we lacked a strong political will. It was
only under this government and this current public health minister that
we are able to do it.=94

The current government was appointed by a military junta after last
year=92s September bloodless coup. Thailand is set to have a general
election on 23 December 2007.

Sinfah Tunsarawuth may be reached at info@ip-watch.ch.

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--
Sarah Rimmington
Attorney
Essential Action, Access to Medicines Project
Washington, DC
Tel: (202) 387-8030
Cell: (202) 422-2687
www.essentialaction.org/access/