AEGiS-BAR: Drug companies drop S. Africa lawsuit Bay Area ReporterImportant note: Information in this article was accurate in 2001. The state of the art may have changed since the publication date.
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Drug companies drop S. Africa lawsuit

Bay Area Reporter - April 27, 2001
S. Predrag


AIDS activists and human rights campaigners exploded with joy when it was announced on Thursday, April 19, that 39 multinational pharmaceutical companies had unconditionally dropped their lawsuit against the South African government, which wanted to provide cheaper versions of brand name AIDS drugs for its 4.7 million AIDS sufferers.

The companies said that they would meet all the legal costs in this landmark case to secure medication for Africa's 26 million HIV carriers.

The leader of the South African Treatment Action Campaign, Zackie Achmat, who is himself HIV-positive, said that, "This is a real triumph of David over Goliath, not only for us here in South Africa, but for people in many other developing countries who are struggling for access to health care."

Most analysts believe that, although the challenge was focused specifically on the South African legislation, the repercussions will be felt by the whole of the developing world struggling to obtain not only antiretroviral drugs for treating AIDS, but also basic medicines for infections linked to HIV, like tuberculosis and meningitis.

In a joint statement, the drug giants - including Bristol-Myers Squibb and Merck of the United States - recognized that the Republic of South Africa "may enact national laws or regulations including regulations implementing Act 90 of 1997 or adopt measures necessary to protect public health and broaden access to medicine in accordance with the South African constitution and the Agreement of Trade Related Aspects of Intellectual Property Rights - TRIPS." In other words, South Africa can produce or import cheap generic AIDS drugs.

Earlier, some multinational drug companies were charging up to $15,000 for the triple combination treatment per AIDS patient per year, while some companies in India, Brazil, and Thailand were selling generic drugs for $600 or even $250 per patient per year.

In Africa, which is home to about 26 million HIV-positive people, most of the population has an income of one U.S. dollar per day.

"The outcome of the case signals a dramatic shift in the balance of power between developing states and drug companies," Oxfam, Doctors Without Borders/Medecins Sans Frontieres, and TAC said in a joint statement. "It sends a clear signal to the African heads of state that lives should and can take precedence over patents."

The South African Health Minister, Dr. Manto Tshabalala-Msimang, told the media outside the court that, "This is a victory not just for South Africa, but for Africa and the whole developing world à I would like to say thank you to the whole world for supporting us." She insisted that the government had not agreed to any deals in exchange for the companies to drop their case.

However, in the joint statement, President Thabo Mbeki's government reiterated its commitment to honor its international obligations, including TRIPS.

After a long night of celebrations, the next morning following the court victory some AIDS activists, including Achmat, admitted that, "The difficult job starts now."

He was referring to the need to mobilize all resources to provide antiretroviral medication to as many people as possible in South Africa, where up to 5,000 people die every week of AIDS and AIDS-related diseases.

U.S. Congresswoman Barbara Lee (D-Oakland), supported the pharmaceutical companies' decision to drop the lawsuit. "Addressing the issue of access to affordable life-saving HIV/AIDS medicines and technologies is only one part of our comprehensive strategy to combating AIDS, but it is a crucial one," said Lee. "We must not tolerate the current policy that dictates that life with a manageable illness is possible if you are wealthy, but death from AIDS is certain if you are poor."
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