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May 12, 2007
Catching Up With. . . Thailand
Thailand's decision to issue compulsory licenses to allow cheap generic versions of two HIV drugs and an anti-clotting drug kicked off a chain of events in recent weeks.
(To recap: Thailand recently exercised its right under World Trade Organization rules to issue such licenses in case of "public health emergency" or "for government use." It's the wealthiest country to do this, which alarmed some trade and intellectual property advocates who claimed that going around the drug companies would cut their incentives for doing research into new drugs. These people usually don't mention that the governments issuing the licenses have to pay the companies a royalty, and that these companies aren't exactly pouring money into research on diseases that primarily affect the poor anyway.)
First, the U.S. Trade Representative announced it was putting Thailand on something called the "priority watch list." This is a warning shot that puts the country on notice it could lose its trade preferences and may not be a good investment for foreign capital. Supporters of issuing generic licenses attribute the move in part to lobbying from a shadow group called USA for Innovation. The conspiracy-minded linked the group's head, Ken Adelman, to the Edelman PR firm, whose clients include a dozen drug companies and the former prime minister of Thailand, who was deposed last fall. For good measure, they also note that Adelman is the guy on President Bush's Defense Policy Board who predicted a "cakewalk" in Iraq.
Next, Brazil followed Thailand's lead and announced it would issue a generic license on an HIV medicine. Despite several years of negotiations, they could not get a low enough price from Merck, the drug's maker. Like Thailand, Brazil's national health plan provides ARV drugs to the needy free of charge. If the name-brand drug companies were afraid that Thailand would open the door to undermining their patents, and profits, in middle-income countries, Brazil's move would provide some justification for that fear.
Then, the Clinton Foundation announced a deal to provide second-line AIDS drugs to the developing world at record-low prices. The foundation also announced it would provide a one-pill-a-day combination drug also at a new low price. The success of this deal will depend on generic licenses being issued. When asked, Bill Clinton said he supported them, and Thailand and Brazil in particular. At least in the short term, the generic companies and the developing countries seem to be winning this war.
Update, May 24: Who cares about all this stuff? UPI writes that PhRMA's fight against Thailand is meant to set an example to prevent other countries from following. It's emblematic of PhRMA's swim against the tide on intellectual property.
Posted by Adam Graham-Silverman at May 12, 2007 8:02 PM
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Posted by: Raphael Haynes at November 12, 2008 11:42 PM