U.S. AIDS drug company holder protests Thai move to break patent

U.S. pharmaceutical giant Merck & Co Inc., which holds the patent on the key anti-retrovirus drug Efavirenz, criticized Thai Public Health Ministry's decision to issue a five-year license for domestic production and imports of a generic version of the AIDS drug.

In a statement issued in Bangkok by its local representative, Merck said the government had made no attempt to consult the company, according to a Thai News Agency report on Friday.

"Issuing a compulsory license is a serious decision that should be taken as a last resort when no other means exist to access essential patented technology," Merck said in a statement, adding that Thai authorities should review its decision.

Dr. Thawat Suntrajarn, director-general of the Disease Control Department under the Public Health Ministry, told reporters that the decision was taken after careful consideration. An official notification letter has been sent out to the patent holder Merck & Co.

He said under the arrangement, the Merck & Co will be paid a royalty of 0.5 percent on sales in Thailand.

"It's up to the company to decide if it wants to sue us. But we are acting within the law and with the benefits of AIDS patients in mind," Thawat was quoted by TNA as saying.

On Wednesday, the Public Health Ministry announced it would undertake its first compulsory licensing for the government to improve access to the key HIV/AIDS medicine Efavirenz.

Despite the protest from the company, many AIDS activists and public health organizations hailed Thailand's move, the report said.

In the meantime, Bangkok-based network The Nation on Friday quoted a report from the Financial Times as saying that the Merck & Co. will offer to cut the price of Efavirenz in Thailand, following the Thai government's announcement on issuing the compulsory license.

According to the report, a spokesman for Merck's local unit, MSD Thailand, said the company would seek talks with Thai health officials to propose discounts or a "voluntary" license to the Thai government pharmaceuticals organization to produce generic versions of its drug.

Source: Xinhua