Talks fail on agreement to supply cheap drugs

The process to import cheap generic versions of two expensive medicines looks set to continue after the Public Health Ministry's third round of negotiations for lower prices from the original manufacturers failed yesterday, the health minister said.
A ministry committee for price negotiations on patented essential drugs met representatives of Abbott Laboratories, the patent holder of HIV/Aids treatment Kaletra, for two hours, but the firm insisted it would not lower its price unless the ministry cancelled the compulsory licence issued months ago. Meanwhile, Sanofi-Aventis, patent holder of heart drug Plavix, offered a special low price but only for limited numbers. The proposal was rejected by the committee, which had expected to receive an offer of cheaper prices without conditions. The ministry decided to invoke the process of compulsory licensing on Kaletra and Plavix so that it could ignore patents on them and legally import cheaper generic versions of the drugs from India. Minister Mongkol na Songkhla said in a teleconference call from Switzerland early yesterday that the compulsory licensing would not be cancelled unless the drug companies lowered their prices to less than those for generic copies. "The compulsory licensing orders is to make the drugs affordable to all, not for commercial purposes," he insisted. The committee's decision to reject the offers from Abbott and Sanofi-Aventis was praised by Aids activists. Jon Ungphakorn, secretary-general of Thailand's Aids Access Foundation, said the offers, particularly from Abbott, showed that "the drug firms never treated patients as human beings, but business". He urged the ministry not to hold more talks with Abbott unless it seeks to register its seven new drugs in Thailand. The US-based drug firm responded to Thailand's compulsory licensing order by withdrawing applications to introduce seven new drugs, including Aluvia, a "heat-stable" version of Kaletra, in Thailand. Committee chairman Dr Siriwat Thiptaradol said after meeting with Abbott and Sanofi-Aventis that Abbott offered to introduce Aluvia in Thailand and sell it at a discounted rate - US$1,000 (Bt34,500) off its original price of $2,200 per patient per year - on the condition Thailand did not impose compulsory licensing for Aluvia. Aluvia is one of nearly 20 essential Aids drugs that the Clinton Foundation agreed recently to negotiate on with generic drug firms for bulk purchases at low prices. As a member of the Clinton Foundation Procurement Consortium, Thailand could buy generic Aluvia at a price as low as $695 per patient per year, but compulsory licensing is needed to make such a deal legal within world trade rules. Sanofi-Aventis, meanwhile, said it would sharply cut its price for Plavix from Bt90 to Bt27 a tablet for 3.4 million tablets every year for 34,000 patients under the government's health security programme and universal health insurance fund. While rejecting the drug firms' offers, Siriwat said he would report the details to the ministry. Meanwhile, the Department of Intellectual Property (DIP) plans to re-examine drug patent laws. DIP deputy head Banyong Limprayoonwong said yesterday he would review the amended draft of the 1999 Patent Act, as demanded by academics and Aids activists. The draft was opposed by activists on the grounds it aimed to accelerate patent registrations by eliminating the "pre-objection" process.
Duangkamol Sajirawattanakul, Pennapa Hongthong The Nation
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