AEGiS-Bangkok Post: Negotiations on drug prices hit deadlock: Govt to go ahead with compulsory licensing

Important note: Information in this article was accurate in 2007. The state of the art may have changed since the publication date.

Negotiations on drug prices hit deadlock: Govt to go ahead with compulsory licensing

Bangkok Post - June 7, 2007
Apiradee Treerutkuarkul

A meeting to negotiate drug prices between the Food and Drug Administration (FDA) and two pharmaceutical firms remained deadlocked yesterday as the Public Health Ministry confirmed that it would go ahead with its plan for compulsory licensing. Abbott Laboratories and Sanofi Aventis stood by their previous price list, while the FDA wanted them to lower the prices to 5% above that for the generic version of the same drugs.

Abbott is sticking by its price for the heat-stable version of an Aids drug called Aluvia at $1,000 (33,000 baht) per person per year, on condition that the ministry revokes compulsory licensing of its second-line anti-retroviral treatment.

Sanofi Aventis also kept the price of Plavix at 27 baht per tablet for patients receiving treatment under the Social Security Office and the universal healthcare schemes.

"If there is no satisfactory agreement on prices, the ministry may have to make a decision to buy drugs from generic makers," said FDA secretary-general Siriwat Thiptaradol.

The ministry says it is determined to finalise its decision on compulsory licensing by the middle of next month.

Vichai Chokewiwat, chairman of the Government Pharmaceutical Organisation, said the ministry would like to defer the decision until after the US Trade Representative reviews a list of export products expected to be withdrawn from the US Generalised System of Preferences (GSP) on July 1.

"I want to be sure that any decision made regarding our policy on life-saving drugs will not affect economic and trade relations as a whole," he said.

In early April, the US downgraded Thailand to Priority Watch List status for its handling of intellectual property rights. It was seen as punishment for the ministry's decision to allow compulsory licensing for the HIV/Aids drugs Efavirenz and Kaletra and the heart drug Plavix.

The US embassy said compulsory licensing was just one factor which led to the downgrading. It said the possible withdrawal of certain export products from the US Generalised System of Preferences list would not be linked to the compulsory licensing policy.

Products that face being taken off the GSP list include jewellery, polyethylene, rubber, hand-crafted flowers, television sets and shrimps.

Dr Vichai said the decision on compulsory licensing would also cover the process of registering some important generic drugs which had not yet been introduced to Thailand.

070607
BP070602

AEGiS is a 501(c)3, not-for-profit, tax-exempt, educational corporation. AEGiS is made possible through unrestricted funding from Broadway Cares/Equity Fights AIDS, Elton John AIDS Foundation, the National Library of Medicine, Pacific Life Foundation and donations from users like you.

Always watch for outdated information. This article first appeared in 2007. This material is designed to support, not replace, the relationship that exists between you and your doctor.

AEGiS presents published material, reprinted with permission and neither endorses nor opposes any material. All information contained on this website, including information relating to health conditions, products, and treatments, is for informational purposes only. It is often presented in summary or aggregate form. It is not meant to be a substitute for the advice provided by your own physician or other medical professionals. Always discuss treatment options with a doctor who specializes in treating HIV.

Copyright ©1980, 2007. AEGiS. All materials appearing on AEGiS are protected by copyright as a collective work or compilation under U.S. copyright and other laws and are the property of AEGiS, or the party credited as the provider of the content. .