Brazil breaks AIDS drug patent with generic version from India
Brazil President Luiz Inacio Lula da Silva has authorised the country to break the patent on an AIDS drug made by Merck & Co – importing a generic version from India instead. It`s the first time Brazil has bypassed a patent to acquire cheaper drugs for its AIDS prevention program.
"Today is Efavirenz, but tomorrow it can be any other drug" said Lula da Silva. "If the prices are not fair; not only for us, but for every human being infected on this planet we will have to make this decision."
Merck said it was "profoundly disappointed" after talks over the drug`s price broke down - Merck had offered a 30% cut on its 1.59 per pill price. Brazil`s health ministry wanted to pay what Merck charges Thailand 65 US cents per pill, another country to negate World Health Organisation rules on drug patents in the name of public health.
Brazil`s government offers free access to AIDS’ drugs condoms and syringes, a move that has helped stabilize infection rates at around 0.6% in adults - the same level as in the United States.
“Merck is profoundly disappointed by the decision of the Government of Brazil to issue a compulsory license for STOCRIN (efavirenz), which would break Merck & Co Inc.`s patent and make it possible for efavirenz to be produced by a generic manufacturer”, said the company in an official release.
"Merck has attempted to negotiate in good faith with Brazil, but a fair offer on STOCRIN has been rejected. While we remain flexible and committed to exploring a mutually acceptable agreement with the Brazilian government to help the country achieve its objective of universal access to treatment, we believe their action is not in the best interests of patients in Brazil and around the world.”
Further on it states that “this expropriation of intellectual property sends a chilling signal to research-based companies about the attractiveness of undertaking risky research on diseases that affect the developing world, potentially hurting patients who may require new and innovative life-saving therapies”.
Brazil will not proceed to import the generic version from three laboratories in India, certified by WHO, saving an estimated 30 million US dollars annually, said Health minister Jose Gomes Temporao.
“We will be paying Merck 1.5% royalty on the price of the generic version imported from India”.
Brazil argues its decision is protected by the 2001 Trips agreement in the framework of the World Trade Organization which enables developing countries to privilege public health over intellectual property.
