[Ip-health] Letter of Thai Minister of Health to Commissioner Mandelson

[Alexandra HEUMBER]

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Please find below the reply of the Thai Minister of health to the
Commissioner Mandeslon's letter on compulsory licences, faithfully
transcribed.

Alexandra

Alexandra Heumber
EU Advocacy Liaison Officer
M=E9decins Sans Fronti=E8res
Access to Essential Medicines Campaign
Rue Dupr=E9, 94. 1090 Brussels
++32 (0) 2 474 75 09 (Dir off)
++ 32 (0) 479 514 900 (Mob)
++ 32 (0) 2 474 75 75 (Fax)



                                                                Ministry
of Public Health
                                                                Tiwanond
Road,
                                                Nonthaburi 11000, Thailand
Tel: +66 2590 2040
                                                                Fax: +66
2591 8496

                       August B.E. 2550 (2007)

The Rt. Hon. Peter Mandelson P.C.
Member of the European Commission
B-1049 Brussels
Belgium

Dear Mr. Commissioner,

                Please kindly refer to the letter from the Thai Commerce
Minister, no. 0703/2978 dated 8th August 2007 replying to your letter
dated 10th July 2007 concerning the Compulsory Licensing (CL) of
pharmaceutical patents in Thailand. The Thai Ministry of Public Health
(MoPH) would like to provide you with the additional information on the
concerns raised in your letter.
In implementing the CL, we intended to pay a royalty fee of 0.5 per cent
to the patent holders as described in our CL announcements.  This fee was
set up based on the past experiences in other developing countries as well
as on the volume of medicines used.  This figure is negotiable, but so far
no company has paid any interest in negotiating on it. To allow better
compensation and constructive engagement with the patent holders, the Thai
MoPH has proposed to the patent holders that if the price of any patented
product under CL, is within 5 per cent above the lowest-priced generic,
the MOPH will purchase that patented medicine from the patent holder. This
5 per cent credit points is equivalent to paying a royalty fee of 5 per
cent which is 10 times more than the announced royalty fee of 0.5 per
cent.  If this criterion is met, the MoPH will not implement the CL.  This
new criteria is meant to show our gratitude to the patent holders when
they show their commitment to serve the public at large by lowering the
price of their patented products.
 I would like to reiterate to you that this 5 per cent credit points is
applied only to those three medicines procured under the CL, to be used by
those patients under the National Health Insurance Schemes. It will not be
applied to the three medicines which are sold in the private out of pocket
market. It will also not be applied to other patented medicines which are
not under CL, and it is not one of the criteria used in deciding to apply
CL on any drug.
Regarding you other concerns, I would also like to request for you kind
advice and information on the following points:
1. As exemplified in our White Paper, there are several examples of CL
implementation by European countries. I would be interested to learn, as
implied in your letter, examples of the abandonment of patents by any drug
company and the isolation of any European Country that have implemented
the CL on some medicines, from the global biotechnology investment
community.
2. The normal royalty fees that the EU member countries used to give to
the patent holders, when they applied the CL on medicines, especially
examples of those which are given above our proposed 5 per cent credit
points.
3. The official evidences on the point raised in your letter that we
intend to implement the CL wherever the price of patented medicine exceed
certain level.
Your kind responses to the 3 points mentioned above would be highly
appreciated. They will support us to improve our actions on increasing
access to essential medicines in the future.
In addition, as the European Parliament has just passed a resolution
related to this issue, I also take the liberty to copy this letter as well
as your letter to the President of the European Parliament for his
information and proper actions.
Please accept, Your Excellency, the assurances of my highest esteem and
consideration.



Sincerely yours,



(Dr. Mongkol Na Songkhla)
Minister of Public Health


c.c.:   1) President of the European Parliament
        2) Mr. Nitya Pibulsonggram, Minister of Foreign Affairs of
Thailand;
        3) Mr. Krirk-krai Jirapaet, Minister of Commerce of Thailand;

Attachment: White Paper on the Government Use of Patent in Thailand