Thailand Blacklisted From Receiving New AIDS Drugs

[Prakanong]

Your case is rather flawed - I am sure you read more than one source while getting your degree!

Anyway - I am happy in big pharma - bloody big bonus this year that went towards my new Patek Philippe ;-)

Keep taking the pills!

I usually refrain from making overt ad hominem attacks on these boards (and the only pills I take are generic naproxen) but you are a very little man indeed. So best to scurry on over to the congregating place of similar small-minded people who would be impressed with your new watch, an object I don't even bother to own.

But really, I am happy for you that you have found happiness in your work.

I must apologise - I allowed myself to get petty.

If you are ever down in Singapore on a visa run or whatever a meal will be on me and I will try to arrange a visit to one of our large sites so you can see for yourself first hand what goes on.

[jdinasia]

no question at all what some people's agenda is in this thread ..... If Big Pharma is bad ... then I must be bad ... and I am good soooooooooo that means Big Pharma is good!

When the preponderance of evidence suggests something FAR different!

[uk_falang]

This has happened because Thailand makes generic copies of drugs and they will just continue to make generic copies of this new drug.

[kdvsn]

no question at all what some people's agenda is in this thread ..... If Big Pharma is bad ... then I must be bad ... and I am good soooooooooo that means Big Pharma is good!

When the preponderance of evidence suggests something FAR different!

Big companies should prohibted from selling therapeutic drugs. In fact, rhe development and distrubution of such drugs should strictly be the province of groups lacking a profiit motive who reside outside the United States.

[jdinasia]

no question at all what some people's agenda is in this thread ..... If Big Pharma is bad ... then I must be bad ... and I am good soooooooooo that means Big Pharma is good!

When the preponderance of evidence suggests something FAR different!

Big companies should prohibted from selling therapeutic drugs. In fact, rhe development and distrubution of such drugs should strictly be the province of groups lacking a profiit motive who reside outside the United States.

That is a bit silly too .... There's a place for Big Pharma .... but like Insurance ... there should be profit caps!

[Plus]

And that's exactly why people are unhappy with big pharma - you (they) don't want people to lead happy and healthy lives, they are against healthy people as a prinicple.

There are rumors of some anti-virus software companies writing viruses themselves so that they can sell their security programs to people they infected.

No one is accusing big pharma of those practices yet, but I won't be surprised that they leave some backdoors in their medicines on purpose so that they can sell new drugs that would cure side-effects of the previous ones.

The whole setup where people make money out of others suffering is fundamentally flawed.

That is stretching things a bit - I do appreciate some of your posts on many topics but conspiracy's just do not happen on a large scale.

Public ownership of the drug producing system would produce naff all - and this is me saying this as a ex-far lefty

I'm not saying it happens on a large scale, I'm saying that the potential is there, people are surely tempted. Large numbers of "me too" drugs and large number of slight modifications to extend patent lives suggest that there are gains to be made by leaving back doors in new drugs.

I also do not have a working model of pharma's reform and I do not advocate public ownership. A proposal that I like is research sponsorship by insurance companies - it's in their interst, they want to see their clients healthy. Of course there are no insurance companies in Africa, and there should be some other mechanism for "world diseases". Maybe there should be a global body pulling resources from all insurers and investing money where they see fit, something under UN, perhaps.

I don't know how it might work. What I do like about this idea is convergence of intersts of all major players. There are better minds than me working on it.

In the meantime, squabbles over prices and patents will be the part of our daily lives. Get used to it.

[chonabot]

Chill with the personal attacks please chaps , or this thread will bite the dust, a shame as it has produced some interesting un-infantile debates.

[ChiangMaiAmerican]

Its a global world now and America can not stand alone - you do not have a monolpoly on brains and innovation - I hope u live long enough to see the rise and relative decline of the US - it will still be the largest economy in 2050 though - its a toss up who will be 2nd - China or Insia

I suppoe there were voices in the wilderness like you from 1870-1914 when the UK lost their lead

While I am by no means an isolationist, the US is one of the few countries in the world capable of standing alone economically. The US is a net food exporter. The US is blessed with sufficient natural resources, including energy resources, to be completely self reliant. The biggest deficit would appear to be energy. The only reason the US is dependent on foreign oil is the politics of big. According to one US Department of Energy study, when oil moves beyond about $37 a barrel it is less costly to convert coal to oil and chemical feed stocks. The are usable deposits of every strategic metal located within the borders of the US. While some foreign deposits are higher grade and the cost of foreign labor to work those deposits is less expensive, the US could reopen mines and generate all the material needed to supply the country. And while big business doesn't want to see this, immigration could be curbed to allow only persons with proven intellectual ability to enter. Without the US market the China and India would both perish economically. It is trade with the US that is largely driving the economic growth in both countries.

That said, it is far to maintain global trade with the caveat that it must be fair for all parties. The US as you are aware is no longer a manufacturing country. The American middle class is under attack by cheap imports and a lack of open markets abroad. Intellectual property now constitutes the major trade goods from the US. If other countries are allowed to freely violate patents and copyrights, the US has no reason to continue to trade with those countries. Currently America lacks the political will to close her markets to countries who freely violate IP rights. That may change as there are now people in the US Congress who see it as their mission to demand parity in trade if other countries want access to the US market. If IP violations freely continue, it is the citizens of the US who will lose.

Edited April 2, 2007 by ChiangMaiAmerican

[Mid]

Abbott shuns Aids drug talks

By Apiradee Treerutkuarkul

The patent holder of the HIV/Aids treatment Kaletra has turned down an invitation by the Food and Drug Administration (FDA) for a meeting to discuss compensation for the drug listed for compulsory licensing.

The rejection of the invitation is being seen by many as the company's attempt to show its disapproval with Thailand's move to break the company's patent for the drug, allowing the state to produce or import cheaper, generic versions.

FDA secretary-general Siriwat Thiptaradol said Abbott confirmed that it would not join tomorrow's meeting, aimed at negotiating the drug price and the royalty fee. Dr Siriwat said Abbott had told the FDA that it found the offer unacceptable.

them abbotts folk could do with a pr dept ,

just a thought

[Old Man River]

Abbott shuns Aids drug talks

By Apiradee Treerutkuarkul

The patent holder of the HIV/Aids treatment Kaletra has turned down an invitation by the Food and Drug Administration (FDA) for a meeting to discuss compensation for the drug listed for compulsory licensing.

The rejection of the invitation is being seen by many as the company's attempt to show its disapproval with Thailand's move to break the company's patent for the drug, allowing the state to produce or import cheaper, generic versions.

FDA secretary-general Siriwat Thiptaradol said Abbott confirmed that it would not join tomorrow's meeting, aimed at negotiating the drug price and the royalty fee. Dr Siriwat said Abbott had told the FDA that it found the offer unacceptable.

them abbotts folk could do with a pr dept ,

just a thought

Mid, since this will never see the inside of a court room, I agree that this is becoming a PR nightmare for Abbott. There is no question (in my mind) that the WTO's TRIPs agreement gives the Thai government the right to do what they did.

However, the current issue relates more to compensation than anything else. The Thai government is using the Thai Patent Act as the basis for compensation. While this would make sense, there are attorneys in Bangkok that question whether the Thai government followed due process under the Thai Patent Act. Abbott, obviously, does not think they did and believes the Thai Patent Act should not be used as the basis for compensation.

Since this will never see the inside of a court room, the winner of this is a foregone conclusion. What it is all going to come down to is how much Abbott values the Thai market. We will see.

[Rhys]

Abbott labs... has it right... Do you think a little Third world country is going to delay this Multinational corporation's profit margin. It's major money maker in the Infant Nutrition area is not Sihitlac for nothing...

5555555

[Choscura]

once again, there should be some international law that allows copying of technology in limited quantities with no royalties on a 'need to have this' basis. thailand should be 100% allowed to copy any and all drugs pertaining to the treatment of HIV/AIDS within a regulated ammount in order to treat it's citizens. it would certainly prevent fiascos like this

[slimdog]

Abbott agrees to lower price of Aids drug

US-based drug maker Abbott Laboratories has agreed to lower the price of its Aids drug Kaletra from 5,938 baht per patient per month to 3,488.20 baht. Siriwat Tiptaradol, the Food and Drug Administration's (FDA) secretary-general, said the new price could make Kaletra cheaper than the generic version.

The firm's proposal to cut the drug price is seen as a means to end the dispute with the Public Health Ministry over the high price of Kaletra that led to the ministry's decision to break the drug patent earlier this year. Speaking after yesterday's meeting with representatives from patent-holding companies, Mr Siriwat said Abbott insisted that it disagreed with the issuance of compulsory licenses, so it opted for a discount on the drug's price instead. Aids Access Foundation's director Nimit Tienudom hailed the firm's discount proposal. ''This is what the patients and health activists have been waiting for. This is apparently a consequence of the government's decision to break the drug patent,'' said Mr Nimit.

Source: http://www.bangkokpost.com/News/11Apr2007_news08.php

[Jai Dee]

Abbott to offer new AIDS drug in Thailand -WSJ

Abbott Laboratories Inc. is offering to sell a newer form of its AIDS drug Kaletra in Thailand at a discounted rate, the Wall Street Journal reported on its Web site on Monday.

The company had earlier refused to offer Aluvia, the newer form of Kaletra, in Thailand and said it would stop launching new drugs there to protest the Thai government's decision in January to override international drug patents.

Abbott offered to resubmit Aluvia at a new price, which is lower than any generic, provided the Thai government would not issue a compulsory license, the Journal cited the company's chief executive, Miles White, as saying.

AIDS activists widely criticized the blocking of Aluvia, because it is a heat-stable form of Kaletra, eliminating the need for costly cold storage in resource-poor countries.

The move doesn't affect Abbott's decision to withhold six other drugs from Thailand, the Journal said.

Abbott could not immediately be reached for comment.

Source: Reuters - 23 April 2007

[Jai Dee]

The eight deadly lies of Big Pharma

As Thailand issues more compulsory licences for Aids and heart medicines that are compliant with the World Trade Organisation's (WTO) Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) and Thailand's laws, the multinational drug industry and its allies are unleashing an ever more strident public disinformation campaign.

Lie No-1: Mellisa Brotz, a spokeswoman for Abbott Industries: "We do not view [the compulsory licence on Kaletra] legal or in the best interest of patients."

Truth: Thailand's compulsory licence on Kaletra is lawful in every respect: (1) it is a fully TRIPS-compliant Article 31( licence issued on valid public health grounds and for government, non-commercial use, which requires no advance negotiation with the patent holder; (2) it is fully complaint with Section 51 of the Thai Patent Act, which directly authorises government, non-commercial use licenses without prior negotiation; and (3) it sets a royalty at .5 per cent of the sale price, which royalty is appealable by the affected patent holder. Although drug companies complain the loudest that Thailand has failed to engage in prior negotiation, in fact, the record shows that Thailand has engaged in many fruitless negotiations with the drug industry for the past two years.

Lie No-2: Roger Bates, American Enterprise Institute: "It is generally understood that compulsory licences should be confined to 'public health crises, including those relating to HIV/Aids, tuberculosis, malaria and other epidemics,' which represent a 'national emergency or other circumstances of extreme urgency'."

Truth: This assertion is the most widely circulated and most repeated misrepresentation that Big Pharma has propagated. The Doha Declaration of 2001 is exquisitely clear that, "each member has the right to grant compulsory licences and the freedom to determine the grounds upon which such licences are granted". Although there are special rules for emergencies that permit expedited procedures for granting a licence, the right to issue compulsory licences is not limited to public-health emergencies.

Teera Chakajnarodom, president of Thailand's Pharmaceutical Research and Manufacturers' Association, takes the alleged emergency rule and raises it one degree higher: "The law allows such actions with pharmaceutical products only in cases of extreme national emergencies, or during wartime."

Lie No-3: Teera again: "After the company does 10 years of research, and then suddenly the Thai government would like to impose the compulsory licence, taking away their property, their assets."

Truth: Patents are not "property" in the traditional sense - they are government-granted rights that are intended to balance the interests of innovators and the public at large, and which are granted by governments with many express and implied conditions, including the right to issue compulsory licences. Governments around the world, including the US, have issued thousands of compulsory licences since the late nineteenth century, including on pharmaceutical products. Moreover, Thailand had its compulsory licence law on the books when all three companies, Merck, Abbott, and Sanofi-Aventis, filed their patent claims in Thailand.

Lie No-4: Khun Teera again: "Everything is negotiable."

Truth: For monopoly-based drug companies, everything isn't negotiable. Abbott has flatly refused for nearly six months to lower its mid-tier price for Kaletra. Moreover, even when negotiating deeper discount prices, drug companies frequently extract promises that countries will refrain from seeking other cheaper sources of supply. In this context, drug companies are mainly interested in preventing generic competition.

Paradoxically, in pursuing the generic-freeze-out option, drug companies will occasionally give concessions to bigger middle-income countries that "make the market" even though they would not do so for smaller and poorer countries like Guatemala.

Lie No-5: Harvey Bale, director-general of the International Federation of Pharmaceutical Manufacturers Associations: "Compulsory licensing can be a route to commercial abuse."

Truth: Monopolies and excessive pricing are not commercial abuse, but competition and lower prices are - go figure. For the hugely rich, R&D drug industry (more than 90 per cent of the global pharmaceutical market) to complain about commercial abuse by generic producers (less than 10 per cent of the global pharmaceutical market) is deeply ironic.

A particular form of this complaint has been asserted by Pharma apologists Roger Bates and Ronald Cass. These two industry-sponsored pundits complain that licenses might eventually be granted to Thailand's own publicly owned, profit-making pharmaceutical company, the Government Pharmaceutical Organisation (GPO). They assert that this will be a form of cheating because production by the GPO will create a commercial advantage to domestic producers, who might thereafter become regional suppliers to other countries.

Nothing in TRIPS prohibits granting licences to profit-making entities. Since Big Pharma has disinvested in developing countries' pharmaceutical capacity post-TRIPS, it makes sense for countries to increase their own capacity to meet domestic and regional needs for essential medicines.

Lie No-6: Harvey Bale: "Compulsory licensing can ... put patients at risk." Merck, Abbott, and Sanofi-Aventis also warn that overriding patents risks jeopardising quality.

In terms of product quality, Bale roll outs out another old chestnut - "generics are inferior". He neglects to mention that multiple generic versions of efavirenz manufactured in India have already received pre-qualification at the WHO. Although it is true that the Thai Government Pharmaceutical Organisation has not yet received WHO-pre-qualification on its first-line ARVs, it is building a good manufacturing practices manufacturing plant after which it will surely meet global standards.

Lie No-7: All of the sources from Big Pharma previously quoted have said that compulsory licences will reduce incentives for innovation.

Truth: All of Asia (except Japan) and all of Africa comprise only 5.1 per cent of the global pharmaceutical market, according to Information Management Group.

Even though low- and middle-income markets are growing faster than developed country markets, drug companies continue to make the vast bulk of their profits from sales in the US, Canada, Europe, and Japan, which collectively buy nearly 89 per cent of drugs by dollar volume. Drug companies always argue that compulsory licences interfere with their R&D incentives, but they never admit that developing countries' compulsory licences never affect their monopoly profits in rich country markets. How can South and Southeast Asia's infinitesimal share of the global market really affect R&D incentive?

Lie No-8: Abbott: "[because] Thailand has chosen to break patents on a number of medicines, ignoring the patent system ... we've [lawfully] elected not to introduce new medicines."

Truth: As discussed above, Thailand has not ignored the patent system - it has used one of its important lawful flexibilities for licensing access to patented products and processes.

Moreover, instead of Thailand breaking the law, it is Abbott that has engaged in an unprecedented and probably illegal withdrawal from the Thai market, taking seven important medicines, including a heat-stable form of Kaletra, out of the drug registration process

To withhold life-saving medicines from the market in retaliation for lawful use of lawful flexibilities is not only unjustifiable, it is abusive and unconscionable.

Brook K Baker is a professor in The Programme on Human Rights and the Global Economy at Northeastern University's School of Law. - Opinion published by The Nation - 23 April 2007

[Jai Dee]

USA for Innovation Calls on Administration Officials to Confront Thailand's Theft of American Property

U.S. Government should elevate Thailand to the Special 301 Priority Watch List

WASHINGTON, April 23 /PRNewswire-USNewswire/ -- USA For Innovation (http://www.usaforinnovation.org) today released an open letter to Secretary of State Condoleezza Rice, Commerce Secretary Carlos M. Gutierrez, Secretary of Health and Human Services Michael O. Leavitt and U.S. Trade Representative Susan C. Schwab reminding them of the importance of intellectual property (IP) to the American economy and to encourage them to use this week's visit by Thailand's Minister of Health Mongkol na Songkhla to confront the recent threats by Thailand to seize patents owned

by American companies.

Earlier this month and in anticipation of the Special 301 Report annually issued at the end of April, USTR noted that Thailand continues to suffer from "widespread commercial IPR counterfeiting and piracy." The new Thai military regime, which assumed power by coup last September, has now introduced direct government theft of American innovation into the quickly deteriorating U.S.- Thailand relationship through its theft of the intellectual property of three drugs produced by American and European companies. These drugs, for HIV/AIDS and heart conditions cost billions of dollars to develop and market.

In the open letter, USA for Innovation urges the U.S. Government to educate the new Thai government on the consequences of its endorsement of dismantling IP protection when Minister of Health Mongkol na Songkhla visits Washington for high-level government-to-government meetings. In addition, the U.S. Trade Representative should elevate Thailand to the Priority Watch List in its Special 301 Report to be released at the end of April.

"Our letter sends a clear message to the U.S. Government about the importance of protecting American IP from theft by the Government of Thailand," said Ken Adelman, Executive Director of USA for Innovation and a former US Ambassador to the United Nations. "We encourage Thailand to reconsider the compulsory license of American products. Moving forward would represent a further weakening of the US-Thai partnership and raises the possibility of U.S. retaliation against the Kingdom," said Adelman.

"This latest action is so disturbing because it comes from the Thai government," Adelman said. "Theft of American innovations by vendors on the streets of Bangkok is bad enough. Sanctioning, endorsing and promoting to other countries a movement to steal U.S. assets in public health care systems around the world is something else entirely. It especially hurts coming from a long-standing ally of the United States."

A scholarly paper commissioned by USA For Innovation finds intellectual property squarely at the heart of American economic growth -- "The Economic Value of Intellectual Property" by economists Dr. Robert Shapiro and Dr. Kevin Hassett quantifies the value of American intellectual property at $5 - 5.5 trillion, equivalent to about 45 percent of U.S. GDP and greater than the GDP of any other nation in the world

Excerpts of the letter:

"Thailand's Minister of Health Mongkol na Songkhla is in Washington D.C. this week and is scheduled to meet with Members of Congress and top officials of the Administration, including Secretary Gutierrez and Ambassador Schwab's deputy Karan Bhatia. These meetings present an excellent opportunity for U.S. policymakers to remind Thailand of its

obligations in the global trading system, the numerous benefits the government of Thailand receives through U.S. preference programs, the importance of intellectual property (IP) protection to American interests, and concerns that recent actions by the new government in Thailand threaten our allied bilateral relationship."

"In September of last year, the military assumed control of the government in Thailand, and appointed new officials throughout the government. Failure in the new regime appears to be systemic."

"The important distinction between theft of American assets on the streets of Bangkok and theft of American assets in Thailand's public health care system is that the latter is sanctioned, endorsed and promoted by the government of Thailand."

"When Thailand's Ministry of Health issues a compulsory license, it does so to the GPO, a historically corrupt state-owned, for-profit monopoly."

"In 2002 Thailand's then-Auditor-General Jaruvan Maintaka issued a report saying that the GPO sold about 60% of its medical products to government agencies at above market prices. In some cases, prices were marked up 1,000 percent."

"Even more disturbing than Thailand's desire to rob American innovation for the sole benefit of building up its state-owned drug company are the implications such actions have on public health in Thailand. For starters, the facilities used by GPO to manufacturer these HIV/AIDS medicines have not been approved by the World Health Organization for meeting basic internationally acceptable standards for safety and efficacy. Even worse are the resistance levels Thai patients are developing as a result of shoddy medicines distributed by the GPO."

"Thailand's Minister of Health has repeatedly claimed that compulsory licenses are necessary because 'we don't have enough money to buy safe and necessary drugs for the people under the government's universal health scheme.' This claim comes at a time when new military leaders awarded themselves wage increases totaling $9 million and raised military spending by more than 30%, or $1.1 billion."

"Consider additional measures to protect American intellectual property in Thailand, including:

a. the revocation of benefits accrued to Thailand under the Generalized System of Preferences;

b. the imposition of import tariffs to redress direct takings by the government of Thailand from American innovators and legitimate patent holders

c. the removal of additional government aid to the current regime due to concerns over democracy and corruption."

Source: USA For Innovation - 23 April 2007

[Jai Dee]

Doubts over Abbott's latest Aids drug claim

MSF says new anti-HIV drug Aluvia unlikely be available in Thailand

Abbott Laboratories has backed down from a high-profile confrontation with the Thai government over patent protection for a popular Aids treatment.

Bangkok-based health activists, however, argued that Abbott's move was just another "trick" and said there was nothing to guarantee that Thais could have access to the lower-priced drugs.

Paul Cawthorne, head of mission of Doctors Without Borders in Bangkok, said Abbott had tricked the public by announcing a few weeks ago it would reduce the price for Aluvia - the latest version of its Aids drug Kaletra - in Thailand. He said the drug was not available as it was one of seven new drugs Abbott decided not to register with the Thai government.

Abbott is to introduce Aluvia in Thailand and sell it at a discounted rate, chief executive Miles White said yesterday.

The move reverses Abbott's decision in February to withhold Aluvia from Thailand following a government announcement that it would allow sales of generic versions of Abbott's Aids drug and other brand medicines in order to give patients access to less expensive treatment.

"In this particular case, in the name of access for patients, we offered to resubmit Aluvia at our new price, which is lower than any generic, provided they wouldn't issue a compulsory licence," White said.

As for the company's initial decision not to sell its new drugs in the country, he explained: "What motivated us was concern that compulsory licensing would be abused ever more widely, using HIV as an excuse."

Jennifer Smoter, a spokeswoman for Abbott, claimed Thailand's Health Ministry had expressed interest in the offer but that no resolution had been reached.

Abbott's move doesn't affect its decision to withhold six other drugs from Thailand.

Mongkol na Songkla, the public health minister, was not available for comment yesterday.

Cawthorne suggested that the government should not stop the compulsory licensing process, saying that it was the key for Thais to access high-quality drugs at a cheap price. Cawthorne said he did not believe the company would actually register the drugs in Thailand.

"We will not believe it until we see patients taking the medicine," he said.

The global pharmaceutical industry increasingly relies on emerging markets such as Thailand to compensate for slowing growth in home markets.

"The symbolic implications are massive," says Gustav Ando, an analyst for Global Insight, an economic-forecasting firm in the US.

"The drug industry is very well aware of what this means. If one country does it, that means any country can do it. This is the front-line battle at the moment. It's not going to stop there."

Illinois-based Abbott tried to defy Thailand's initiative in February, refusing to sell the country seven of its newest drugs.

Abbott received some support from other drug makers, who argued that Thailand's decision to withdraw patent protection for some of their products undermined their ability to fund new research that ultimately benefits all patients.

But the unprecedented move appeared to backfire, prompting consumer boycotts in Thailand, bringing human-rights advocates out in support of Thailand's policy and provoking protests from some Abbott shareholders who argued Abbott should sell its latest drugs in Thailand.

Thailand is a fast-growing market for Abbott, generating about US$30 million (Bt978 million) a year in sales for the company, according to a person familiar with the company's sales. Abbott declined to specify the size of its market in Thailand.

In backing down, Abbott is joining Merck and Co and Sanofi-Aventis SA, which have already cut the price of their Aids and heart-disease drugs in the hope of dissuading Thailand from switching to less expensive alternatives.

Thailand could still choose to import generic drugs to replace Abbott's, however, just as it is now using generic versions of Merck's Aids drug Efavirenz, despite Merck's own move to lower prices.

Source: The Nation - 24 April 2007

[Jai Dee]

Thailand wins round two in battle to access cheaper AIDS drugs

The military government in Thailand has won the second round in it's battle to access cheaper AIDS drugs for the nations 580,000 AIDS sufferers.

The drug giant Abbott is now offering to sell its latest antiretroviral drug Aluvia (Kaletra) in Thailand at a reduced price.

The offer follows wide criticism leveled at Abbott from many quarters, in particular AIDS activists who condemned Abbotts reluctance to supply the drug cheaply because Aluvia is an updated version of Kaletra and is heat-stable; this dispenses with the need for expensive cold storage in poor countries.

Thailand had threatened to import a generic version of Aluvia from India following an announcement by Abbott saying it would withhold the introduction of new drugs, including Aluvia, from the country.

According to the Thai Network of People Living With HIV/AIDS, the generic version of Aluvia costs about 4,000 baht, or $124, monthly, but generic drug makers could reduce the price to less than 2,000 baht, or $62, monthly.

Earlier this month Abbott agreed to cut the price of Kaletra by more than half to $1,000 per patient per year in low and middle-income countries.

Initially Abbott had refused to launch the drug in Thailand in protest against the government's decision in January to override an international patent on Kaletra.

The Thai Health Minister Mongkol na Songkhla says nothing has been yet been finally concluded, but reports suggest that Abbott has offered to resubmit Aluvia at a price lower than any generic, provided Bangkok does not issue a compulsory licence allowing for the purchase or production of generic versions on Kaletra.

Whether Thailand will give such an assurance to the U.S. drug maker is unclear and Abbott is fearful Thailand will bargain away its rights under World Trade Organisation rules to issue a licence allowing the manufacture of a patented drug without the consent of a foreign patent owner.

Organisations such as Medicins Sans Frontieres says Abbott is holding patients hostage in efforts to force the government to back down on the compulsory licence issue.

Thailand is currently using generic versions of Merck's antiretroviral Efavirenz, despite the company's offer to reduce the drug's cost; Abbott's decision to reduce the cost of Aluvia does not affect its suspension of six other drugs from the Thai market.

The pharmaceutical drug giants were taken aback late last year when the new military post-coup government in Thailand decided to override the patent on Efavirenz, an HIV-AIDS treatment made by Merck by using World Trade Organisation rules which allow patents to be over-rode in the case of a national health emergency.

That action which might have meant compulsory licensing would be abused more widely, prompted drug companies to offer cheaper drugs in order to protect their licenses; Merck cut the price of Efavirenz by 46 percent for countries hard hit by HIV-AIDS, including Thailand.

French drugmaker Sanofi-Aventis has also offered better access to its heart disease medicine Plavix after Thailand announced a compulsory licence, the first by a developing country for such a drug.

Source: Pharmaceutical News - 24 April 2007

[ThaiGoon]

Nice.

[Gravelrash]

For those of you weeping about the lost profits form Drug companies because of nasty old Thailand, have a read of the Drug Story at this link: http://educate-yourself.org/fc/drugstory.shtml

That site does have a few whackos however you should find the above article quite illuminating. Perhaps we could pass the collection plate around for Abbots? Either that or you may start to see your sympathies are very badly misplaced regarding any drug company.

[Jai Dee]

USA for Innovation Ad Campaign Highlights Thailand's Theft of American Assets

USA for Innovation today announced an advertising campaign to highlight Thailand's new military regime and its recent threats to seize patents owned by American companies. The advertisement, a full-page ad in the Wall Street Journal, highlights a recent movement by the new Thai military regime, which assumed power by coup last September, to steal American medical innovations.

Additionally, supporters of USA for Innovation delivered over 35,000 letters to President Bush, Administration officials and Congressional leadership urging the United States to "take retaliatory action in the form of trade or economic sanctions or the removal of military aid."

Complete Text of the Advertisement"Slouching Towards Burma Thailand's Radical New Regime When military dictators take over by coup, the people lose. Right now, General Surayud Chulanont is steering Thailand the way of Burma. First, he lined military pockets with pay increases of $9 million and new military spending of $1.1 billion. Then the opposition started disappearing. Human Rights Watch last month released a report detailing 22 cases of targeted 'disappearances' by the Thai military in the southern provinces. Then the Ministry of Health threatened to kidnap American tourists. The military-appointed representative at the World Health Organization, Dr. Suwit Wibulpolprasert, proposed in January holding Western tourists hostage to bargain for flu vaccines. Then coup leaders hastily imposed draconian measures on foreign-owned companies -- like capital controls, restrictions on business advertising and surveillance of Americans working in Thailand. And now they are stealing American assets for military benefit. The new military-appointed Minister of Health, Mongkol Na Songkhla, has begun to override the patents on American medical innovations to strengthen manufacturing for the military-controlled Government Pharmaceutical Organization.

The U.S. Patent and Trademark website claims that such theft costs America $250 billion and 750,000 jobs per year. In a global economy American innovation is our comparative advantage. A study by USA for Innovation estimates that U.S. intellectual property today is worth between $5 trillion and $5.5 trillion, equivalent to about 45 percent of the U.S. GDP and greater than the GDP of any other nation in the world. We urge President Bush and the Congress to Protect America's Interest and the People of Thailand."

Source: earthtimes.org - Wed, 25 Apr 2007

[taxexile]

USA for Innovation

8 Deadly Lies About Thailand's Theft of American Innovation

WASHINGTON, April 25 /PRNewswire-USNewswire/

-- USA for Innovation

(http://www.usaforinnovation.org) today announced a special report

highlighting the 8 deadly lies about Thailand's theft of American

innovation by the new military regime and Health Minister Mongkol na

Songkhla.

Lie #1: Thailand is a poor country and cannot afford Western medicines.

Thailand has the 21st largest economy in the world. Thailand is in the

top 10% of the richest countries in the world, richer than 206 other

countries included on the list of the 2006 CIA World Factbook. The World

Bank and International Monetary Fund confirm Thailand's strong position in

the global economy, respectively ranking Thailand 20th and 21st.

http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)

Lie #2: Thailand is just doing everything it can to address its AIDS

problem.

According to the United Nations, Thailand's government spent $93

million on AIDS in 2004, the last year publicly available. The World Health

Organization notes that Thailand spends far less on health care (3.3% of

GDP) than peers such as Argentina (8.9%) or poorer countries like Cambodia

(10.9%) or Lebanon (10.2%).

While it is encouraging to see Thailand increased its spending on AIDS

from $70 million in 2003, the truth is that the government spends much more

money to support its state-owned telecommunications company, media empire,

bank and airline. After the military took control of Thailand's government

in a coup last September, the new government raised military spending by

$1.1 billion, an almost 50% increase from the previous year. In other

words, Thailand is stealing American technology to finance 2.4% of its

radical remilitarization. What are they going to steal to fund the rest of

it?

http://data.unaids.org/pub/GlobalReport/20..._GR_ANN3_en.pdf

http://www.who.int/whr/2006/en/

http://www.nationmultimedia.com/2006/12/08...on_30021038.php

Lie #3: Thailand is just trying to lower the cost of Western medicines.

A good place to start would be Thailand's self-imposed tax and tariffs

on these medicines. Thailand applies a 7% value-added tax (VAT), which the

Bangkok Post reported on April 23 may rise to 10% to make up for other

spending priorities. The government also adds another 10% tariff on drug

imports.

http://www.bangkokpost.com/Business/23Apr2007_biz26.php

http://www.aei.org/publications/pubID.25890/pub_detail.asp

Lie #4: Thailand's Government Pharmaceutical Organization issues drugs

that are safe and effective.

The GPO's distribution of dangerous medicine like GPO-vir is

contributing to the unusually high resistance levels of Thai patients. As

American Enterprise Institute scholar and noted HIV/AIDS expert Roger Bate

recently stated:

There is no decent "bioequivalence data" on the quality of GPO-

manufactured drugs, meaning that they are at best approximate copies and

should not be labeled generics ... As to fostering drug resistance, a 2005

study by Thailand's Mahidol University's faculty of medicine found that

GPO- vir, a copy HIV treatment GPO makes, had between 39.6% and 58%

resistance in the 300 patients investigated. This result is perhaps the

worst case of HIV drug resistance in the world.

http://www.aei.org/publications/pubID.25585/pub_detail.asp

Lie #5: Thailand's public health system is lowering costs for medicines

In addition to the taxes and tariffs, Thailand's Government

Pharmaceutical Organization builds in its own profit margins before

distributing drugs to the people of Thailand. In 2002 Thailand's

then-Auditor-General Jaruvan Maintaka issued a report saying that the GPO

sold about 60% of its medical products to government agencies at above

market prices. In some cases, prices were marked up 1,000 percent.

Investigative journalist Daniel Ten Kate notes in the Asia Sentinel earlier

this year:

In 2003, the GPO made a net profit of 624.2 million baht [$19.2

million] on revenues of 3.7 billion baht [$114 million]. A year later,

revenues topped 4 billion baht [$123.3 million], and rose to five billion

[$154.1 million] in 2005. Profits for the GPO topped one billion baht

[$30.8 million] in 2005, according to Anuthin Charnveerakul, the deputy

public health minister under Thaksin, who also scolded the state enterprise

for spending a mere 19 million baht [$585,541] -- just two percent of net

profit -- on research and development. Now the GPO plans to double revenue

to 10 billion baht [$308.2 million] by 2010.

http://www.asiasentinel.com/index.php?opti...k=view&id=3

51&Item

id=34

Lie #6: Thailand is in the middle of an AIDS crisis.

The world is in the middle of an AIDS crisis. According to the 2006

United Nations Report on the Global AIDS epidemic, Thailand's HIV

prevalence rate is less than 1 percent. It is insulting to claim "crisis"

when it is really a matter of spending priorities. In fact, every penny

Thailand refuses to pay for medicine is one less penny available to develop

the medical innovation necessary to help countries such as Swaziland (20%

of the total population is HIV+), Zimbabwe (14%) and Botswana (17%) who are

struggling to find public health solutions to this horrible disease.

http://data.unaids.org/pub/GlobalReport/20...ex2_Data_en.xls

Lie #7: The drug companies started this fight.

Thailand's new Minister of Health did not make a single effort to

negotiate with drug companies before issuing compulsories licenses. He

opted instead to launch an illegal first strike. Former U.S. Secretary of

Health and Human Services Tommy Thompson, in calling for companies and

government to negotiate a solution, described the Ministry of Health's

actions in the press:

Unfortunately there was no diplomacy in this process: there was

virtually no effort to reach out to the U.S. government or the companies

that developed the drugs to arrive at a solution before the licenses were

issued. Thailand's aggressive first step has now created an escalating

battle between government and industry.

http://www.marketwatch.com/news/story/comm...dical-diplomacy

- growing/story.aspx?guid=%7B310AEA38-3BF5-4676-B7B2-529B847E84DF%7D

Lie #8: Thailand's recent use of compulsory licenses is legal.

Thailand's interpretation of compulsory licenses, as outlined in their

February 2007 "whitepaper", wishes to remove all limits on use of the

compulsory license for medical products. Thailand's recent movement to

issue compulsory licenses for three medical products is not consistent with

the rules outlined in the WTO's Agreement on Trade-Related Aspects of

Intellectual Property Rights (TRIPS). For a detailed discussion, please see

Ambassador Ken Adelman's April 23, 2007 letter to Ambassador Rice,

Secretary Gutierrez, Secretary Leavitt and Ambassador Schwab.

http://usaforinnovation.org/images/2007_adelmanletter.pdf

SOURCE USA for Innovation

--------------------------------------------------------------------------------

About USA for Innovation

USA For Innovation is a non-profit organization dedicated to the

protection of intellectual property and continued innovation around the

globe. USA For Innovation educates decision makers, the media and general

public about threats to innovation. For additional information, please

contact us at 866-646-8668 or [email protected].

[Jai Dee]

NGO urges action on 'IPR theft'

USA for Innovation wants officials to up ante on 'Thai threats' to US-owned patents

The non-governmental organisation USA for Innovation on Monday released an open letter sent to US officials to remind them of the importance of intellectual property (IP) to the US economy and to encourage them to use this week's visit by Health Minister Mongkol na Songkhla to confront the recent threats by Thailand to seize patents owned by American companies.

The letter was sent to Secretary of State Condoleezza Rice, Commerce Secretary Carlos M Gutierrez, Secretary of Health and Human Services Michael O Leavitt and US Trade Representative (USTR) Susan C Schwab.

Earlier this month and in anticipation of its Special 301 Report annually issued at the end of April, the USTR said that Thailand continued to suffer from "widespread commercial IPR [intellectual property rights] counterfeiting and piracy".

The NGO's open letter said the Thai military regime, which assumed power last September, had now introduced direct government theft of American innovation into the quickly deteriorating US-Thailand relationship through its theft of the intellectual property of three drugs produced by American and European companies. These drugs, for HIV/Aids and heart conditions, cost billions of dollars to develop and market.

In the letter, USA for Innovation urges the US government to educate the new Thai government on the consequences of its endorsement of dismantling IP protection when Mongkol visits Washington for high-level government-to-government meetings. In addition, the USTR should elevate Thailand to the Priority Watch List in its Special 301 Report to be released at the end of April.

"Our letter sends a clear message to the US government about the importance of protecting American IP from theft by the government of Thailand," said Ken Adelman, executive director of USA for Innovation and a former US ambassador to the United Nations. "We encourage Thailand to reconsider the compulsory licence of American products. Moving forward would represent a further weakening of the US-Thai partnership and raises the possibility of US retaliation against the Kingdom."

"This latest action is so disturbing because it comes from the Thai government," Adelman said. "Theft of American innovations by vendors on the streets of Bangkok is bad enough. Sanctioning, endorsing and promoting to other countries a movement to steal US assets in public healthcare systems around the world is something else entirely. It especially hurts coming from a long-standing ally of the United States."

A scholarly paper commissioned by USA for Innovation found intellectual property squarely at the heart of American economic growth. "The Economic Value of Intellectual Property" by economists Dr Robert Shapiro and Dr Kevin Hassett quantifies the value of American intellectual property at US$5 trillion-$5.5 trillion (Bt175 trillion-Bt192.5 trillion), equivalent to about 45 per cent of US gross domestic product and greater than the GDP of any other nation.

Source: The Nation - 26 April 2007

[Mid]

Lie #4: Thailand's Government Pharmaceutical Organization issues drugs

that are safe and effective.

The GPO's distribution of dangerous medicine like GPO-vir is

contributing to the unusually high resistance levels of Thai patients. As

American Enterprise Institute scholar and noted HIV/AIDS expert Roger Bate

recently stated:

There is no decent "bioequivalence data" on the quality of GPO-

manufactured drugs, meaning that they are at best approximate copies and

should not be labeled generics ... As to fostering drug resistance, a 2005

study by Thailand's Mahidol University's faculty of medicine found that

GPO- vir, a copy HIV treatment GPO makes, had between 39.6% and 58%

resistance in the 300 patients investigated. This result is perhaps the

worst case of HIV drug resistance in the world.

http://www.aei.org/publications/pubID.25585/pub_detail.asp

if substantiated ,

then ,

nothing short of criminal ............................

[nick2k]

personally, I believe all western companies should not go building outside their own countries. if they didn't do this, then, these issues of other countries stealing your IP would not be an issue.

frankly, I think that is what will happen eventually. and boy. will I be glad.

then, if some other country wants something you have, they won't be able to steal it from you like they can now.

western countries including america are learning their lessons.

american companies should be in america providing jobs to americans.

if abbot had it's factories in america, the next time they invent a new drug, nobody including thailand would be able to STEAL it. like paraguay, other countries would be ASKING for it.

for old drugs, abbott has already showed thailand how to make the medicine. ..but then, my guess is - they will not continue this policy with anything new coming in the future.

it would be stupid if they did.

[Pepe']

For those of you weeping about the lost profits form Drug companies because of nasty old Thailand, have a read of the Drug Story at this link: http://educate-yourself.org/fc/drugstory.shtml

That site does have a few whackos however you should find the above article quite illuminating. Perhaps we could pass the collection plate around for Abbots? Either that or you may start to see your sympathies are very badly misplaced regarding any drug company.

--------------------------------

Old news and boring. I've been practicing integrated medicine since 1974. If you think your going to stop the Rockefellers and their gang you're dreaming.

I have gone against the tide for many many years. It's exhausting and definite not financially rewarding.

My patients are grateful though and I would like to think I've accumulated some good karma for healing people in lieu of a big bank account as some TV members imagine I have.

Talk is cheap. Do something about it.

[esprit]

Interesting review of the issus just shown by the BBC in the UK:-

http://news.bbc.co.uk/2/hi/asia-pacific/6587379.stm

[Jai Dee]

AIDS Healthcare Foundation Says CalPERS to Question Abbott on Thailand Drug Blacklist

On the eve of Abbott Laboratories' Annual General Meeting Friday, April 27th, AIDS Healthcare Foundation (AHF), the US' largest HIV/AIDS healthcare, prevention and education provider, which operates free AIDS treatment clinics in the US, Africa, Latin America/Caribbean and Asia, will host a press conference and teleconference Thursday morning in Chicago regarding Abbott's volatile global drug pricing and policies for its AIDS drugs, and the company's recent actions against the Government and people of Thailand. AHF's press conference is Thursday, April 26th at 9:30am Central Time (10:30am Eastern, 7:30am Pacific) in Chicago (St. Clair Room at the Chicago Wyndham Downtown Hotel, 633 N. St. Clair Street 60611. To access the event as a teleconference, dial +1.877.214.0402 access code #841897).

Last week, officials from AIDS Healthcare Foundation testified in Sacramento about Abbott's drug pricing policies in Thailand before the Investment Committee of the California Public Employees Retirement System (CalPERS), which holds nearly $318 million in Abbott stock. AHF officials asked the pension fund to write to Abbott regarding these pricing and access issues. In response, officials indicated that CalPERS would send a letter to Miles D. White, Abbott's Chief Executive Officer and Chairman of the Board, concerning Abbott's recent actions and its AIDS drug pricing and policies in Thailand.

"I received notice from Senior Investment Staff at CalPERS confirming that they would be sending a strong letter to Abbott about the company's recent punitive move to blacklist the people of Thailand from potential access to most of Abbott's newer drugs," said Terri Ford, Director of Global Advocacy for AIDS Healthcare Foundation, who testified at the Investment Committee meeting last week and asked CalPERS to investigate and press Abbott to overturn its blacklist. "While CalPERS clearly has a fiduciary interest in Abbott's bottom-line performance, we are pleased that the Board recognized the urgency of the issue and also showed its humanitarian commitment to socially responsible investing."

Abbott's recent actions in Thailand spurred AIDS and human rights activists worldwide to protest the company and its policies. Abbott's actions in that hard-hit Asian country over the last few months have also generated considerable media scrutiny, and the company's punitive actions against Thailand -- coupled with the largely unflattering media coverage -- raised concerns among Abbott shareholders and investors large and small.

"Over the past several weeks, Abbott has clearly been humbled, bowing to pressure from activists from around the globe. In cutting its AIDS drug prices in Thailand and elsewhere, and through its offer to rescind its blacklist for at least one of its newer drugs, Aluvia, Abbott has backed down considerably," said Michael Weinstein, AIDS Healthcare Foundation's President. "However, we remain disappointed that Abbott is holding fast to its blacklist in Thailand on six other new drugs, and angry that its offer to register the AIDS drug Aluvia is contingent upon Thailand pulling its compulsory license for a generic version of that drug. CalPERS has previously demonstrated a serious commitment to socially responsible investing, and we thank the CalPERS Board for its leadership on this issue."

Three weeks ago, in response in part to worldwide outcry against Abbott, the company announced it would offer its key AIDS drug, Kaletra, to Thailand and 40 other low and lower middle-income countries at a reduced price of US $1,000. On Monday, Abbott announced it would also offer one of its previously blacklisted drugs, Aluvia (a heat-stable version of Kaletra), to Thailand at the US $1,000 reduced price. That offer, however, remains contingent upon the Government of Thailand pulling a compulsory license that allows for a generic version of the drug to be made and sold in Thailand.

In mid-March, Abbott created a firestorm when it first announced it would withdraw all applications for its newer drugs' approval process from Thailand's government review process. That shortsighted move -- which was met with widespread protests and condemnation of Abbott by AIDS and humanitarian activists worldwide -- followed Thailand's announcement in January that it would begin issuing compulsory licenses to allow for manufacturing of cheaper generic versions of several Abbott medications, including Kaletra. Thailand announced those plans following unsuccessful drug price negotiations between Abbott and the Government of Thailand. Abbott bowed to pressure from the activists when it announced the dramatic 55% price reduction (from US $2,200 to US $1,000) for Kaletra in Thailand and 40 or so low and lower middle-income countries on April 10th.

"This whole issue is bigger than Thailand and bigger than HIV/AIDS -- it's really about multi-national drug companies like Abbott using developing world countries to expand their drug markets & sales as the markets in the US and other Western markets dwindle -- Big Pharma's ravenous thirst to expand its global market share," added AHF's Weinstein. "This is a market trend that echoes when tobacco companies stepped up their sales and marketing targeting the developing world -- particularly Asia -- as cigarette sales fell when smoking fell from favor and became more taboo in the U.S. In a sense, Abbott has been like an army scout ahead of Big Pharma's troops in this push for global market expansion, as Abbott has clearly been the most aggressive in its actions and reactions. The Wall Street Journal hit the nail on the head when it recently noted, 'Big drug companies have been pushing sales in emerging markets like Thailand, in part, because of a backlash against expensive brand-name drugs in the U.S. and other Western markets'."

Flexibilities under the World Trade Organization's (WTO) Trade-related Aspects of Intellectual Property Rights (TRIPS) Agreement allow governments to issue compulsory licenses (including payment of royalties to the affected company) without consulting the foreign patent owner if the country deems it necessary and appropriate to protect the health of its citizens. After Thailand first issued the compulsory license for Kaletra earlier this year, Abbott began negotiating price reductions with Thai officials. Thailand appeared to be willing to engage in negotiations, but Abbott initially would only take US $200 off the US $2,200 price (per patient yearly). It was estimated that with Thailand's compulsory license, a generic version of Kaletra could be produced for just over US $1,000 per patient yearly, a price now beaten by Abbott's recent price reduction offers for Kaletra and Aluvia.

Aluvia is one of several drugs for which Abbott had withdrawn applications for regulatory approval for use in Thailand in response to that country's move to issue compulsory licenses for the drugs. The urgent issue for HIV/AIDS patients revolved around the heat-stable form of Abbott's drug, Kaletra, called Aluvia, which was in the process of being approved for use in Thailand, but was one of the pending drug approval applications in Thailand which Abbott revoked. While Abbott has offered to reinstate the application for approval of Aluvia and sell it for US $1,000, the offer remains contingent upon Thailand pulling the compulsory license for the drug.

AIDS Healthcare Foundation officials have previously testified before the CalPERS Investment Board to urge the body to use its clout as a significant institutional investor. In 2003, CalPERS wrote a letter to British drug giant GlaxoSmithKline (GSK) after AIDS advocates (including AIDS Healthcare Foundation) pressed the Investment Committee to inquire about GSK's AIDS drug pricing and limited drug access in the developing world. At that time, the CalPERS Investment Committee heard testimony from AHF officials and GSK attorneys in response to a plea from AIDS advocates that CalPERS, as a significant institutional investor in GSK (US $760 million at that time), assist the AIDS advocates in trying to get specific answers from GSK justifying and explaining its steep prices on its lifesaving AIDS drugs in Africa and the developing world.

CalPERS is the nation's largest pension fund with a current market value of over $242.7 billion (as of close of market 04/24/07). CalPERS has a distinguished history of trying to balance its fiduciary responsibility with socially responsible investments. It was among the first funds to divest holdings to combat apartheid in South Africa, and in recent years it divested holdings in several Southeast Asian countries in response to alleged human rights abuses in those countries. CalPERS also previously wrote to Abbott Laboratories (in December, 2004) with concerns about the safety of Abbott's popular weight-loss drug, Meridia, following public uproar and concerns around Merck's drug, Vioxx. In its letter to Abbott regarding Meridia, CalPERS noted it was writing with "...questions on product safety, market confidence and loss of shareholder value." At that time, CalPERS stated it was "...very concerned regarding the greater implications for the industry and of course our investment in Abbott Laboratories."

Source: AIDS Healthcare Foundation (AHF) - 27 April 2007

[Jai Dee]

Under fire

About 100 local activists calling themselves the ‘Anti-Abbott Network’ yesterday urged a boycott of Abbott Laboratories products. Abbott this week offered to register Aluvia, a heat-stable form of the Aids drug Kaletra, in Thailand on condition the country stopped compulsory licensing.

Similar campaigns took place in 20 other locations, including Hong Kong, the United States, South Korea, Brazil and Argentina.

Source: The Nation - 27 April 2007

[egeefay]

Why can't the Thai government just buy HIV drugs from the drug companies? After all Thailand isn't a debtor nation any longer. It certainly has a positive trade balance with many foreign countries including the US.

And Thailand understands the value of intellectual property rights. Back in 1997 when US researchers came out with a Jasmine rice knockoff, I remember the outrage that Thailand expressed at the time and the anti American feelings.

I can see a poor nation taking this position but Thailand is far from poor. It's government can and should do a lot more for it's people.

Yet in Thailand you will find the poor throwing themselves at the mercy of private organizations for charity and welfare. The government provides scant few services for the poor.