[Ip-health] Industry publication reports that WTO says Thai's patent policy is legal

[Sarah Rimmington]

1. Pharmalot article referencing industry publication
http://www.pharmalot.com/2008/02/who-thailands-patent-policy-is-legal/
2. Industry publication: pharmatimes.com article
http://www.pharmatimes.com/WorldNews/article.aspx?id=3D12899

1. WTO: Thailand=92s Patent Policy Is Legal
February 19th, 2008 7:39 am By Ed Silverman
http://www.pharmalot.com/2008/02/who-thailands-patent-policy-is-legal/

As Thailand=92s new government considers whether to continue with
compulsory licensing, which has involving overriding patents on several
branded drugs, a World Health Organization mission confirms that the
controversial policy is legal, PharmaTimes reports.

Thailand first made use of the World Trade Organization compulsory
licence provisions in November 2006 in order to manufacture a generic
version of Merck=92s Stocrin HIV/AIDS drug, after health minister Mongkol
Na Songkhla argued the cost of the imported branded version was
unaffordable. Since then, Bangkok issued six more licences, but the new
health minister, Chaiya Sasomsab, wants to reverse the policy,
questioning its legality and warning of trade sanctions imposed by the
US and Europe.

However, the report of a seven-member WHO trade mission confirms that
the use of compulsory licences =93is one of several cost-containment
mechanisms that may be used for patented essential medicines not
affordable to the people or to public health insurance schemes.=94 The
report acknowledges that such processes are often complicated, so: =93it
is therefore important to establish clear decision-making processes,
including the determination or designation of the authorities or bodies
charged with responsibility for the various stages of decision-making,=94
PharmaTimes writes.

The report doesn=92t actually evaluate Thailand=92s particular use of the
process, pointing out that this varies in different countries, =93with
some adopting administrative procedures and others a mixed system, where
initial decisions relating to the granting of compulsory licences and
compensation are made administratively and appeals are made to the
judicial system.=94

Supporters of the policy welcomed the statement. The mission included
WTO reps, the United Nations Development Programme and legal experts,
according to PharmaTimes. The team spent a week this past month meeting
with Thai officials, drugmakers, patients and consumer groups as the new
government=92s commerce, foreign affairs and health ministers considered
the policy=92s future.

Chaiya suggests that paying for drugs could cost less than if the US
decided to impose sanctions or a boycott. The US Trade Representative
placed Thailand on its Priority Watch list for its patent transgressions
in 2007, and BIO last week wrote the US Trade Rep asking for Thailand to
be placed on Foreign Priority, the most severe classification.

However, Jon Ungphakorn, chairman of the Thai NGO Coordinating Committee
on Development, commented this week that while Thailand has so far
issued only seven compulsory licences, between 1969 and 1993 Canada
=93issued 613 licences, enjoyed the lowest prices for drugs in the
developed world and had a more vigorous pharmaceutical industry than the
US.=94

2. Here is the industry publication's report:

Thai drug policy legal, says WTO, but govt may abandon it
19 February 2008
Lynne Taylor
http://www.pharmatimes.com/WorldNews/article.aspx?id=3D12899

As Thailand=92s new government considers whether to continue with the
country=92s controversial compulsory licensing policy, which has enabled
it to override the patents on a number of branded drugs, an
international mission has confirmed that its use of the mechanism has
been legal.

Thailand first made use of the World Trade Organization compulsory
licence provisions in November 2006 in order to manufacture a generic
version of Merck & Co=92s HIV/AIDS drug Stocrin (efavirenz), after Public
Health Minister Mongkol Na Songkhla declared that the high cost of the
imported branded version was preventing patients in Thailand from
accessing it.

Since then, the country has issued a further six compulsory licences,
but the new government=92s Public Health Minister, Chaiya Sasomsab, has
said he want to reverse the policy, questioning its legality and warning
of the immense potential costs to the country if major trading partners
such as the USA and European Union were to use it as a reason to impose
trade sanctions.

However, the report of a seven-member trade mission headed by World
Health Organisation officials has affirmed that the use of compulsory
licences =93is one of several cost-containment mechanisms that may be used
for patented essential medicines not affordable to the people or to
public health insurance schemes.=94 The report acknowledges that such
processes are often complicated, so: =93it is therefore important to
establish clear decision-making processes, including the determination
or designation of the authorities or bodies charged with responsibility
for the various stages of decision-making,=94 it adds.

The report makes no evaluation of Thailand=92s particular use of the
process, pointing out that this varies in different countries, =93with
some adopting administrative procedures and others a mixed system, where
initial decisions relating to the granting of compulsory licences and
compensation are made administratively and appeals are made to the
judicial system.=94

Supporters of the policy welcomed the backing for the policy=92s legal
status by the WHO mission, which also included representatives of the
WTO, the United Nations Development Programme and legal experts. This
month, the team spent a week meeting with government officials,
drugmakers, patients and consumer groups to discuss the issue, as the
new Samak Sundaravej government=92s commerce, foreign affairs and health
ministers considered the policy=92s future.

Mr Chaiya has suggested that paying for drugs which Thailand is now
making under compulsory licence could cost the country far less than if
the USA decided to impose sanctions or a boycott. The US Trade
Representative placed Thailand on its Priority Watch list for its patent
transgressions in 2007, a move which was welcomed by the Pharmaceutical
Research and Manufacturers of America. =93In refusing to support the R&D
of new medicines, countries such as Thailand - which is the world=92s 21st
largest economy out of more than 200 countries worldwide - are shifting
the burden of R&D costs onto patients in America, the same patients who
already shoulder an unfair burden of R&D costs,=94 said PhRMA chief
executive Billy Tauzin.

However, Jon Ungphakorn, chairman of the Thai NGO Coordinating Committee
on Development, commented this week that while Thailand has so far
issued only seven compulsory licences, between 1969 and 1993 Canada
=93issued 613 licences, enjoyed the lowest prices for drugs in the
developed world and had a more vigorous pharmaceutical industry than the
US.=94
By Lynne Taylor


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