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Thailand Will Suspend Companies' Drug Patents

January 30, 2007--As reported in The Wall Street Journal, Thailand's government has decided to suspend patent protections in order to increase access to certain drugs. Thailand 's Ministry of Health confirmed that the government has approved the sale and production of cheap, generic versions of Plavix, the blood-thinning drug originally developed by Sanofi-Aventis and co-marketed in several countries with Bristol-Myers Squibb, and the HIV treatment Kaletra, made by Abbott Laboratories.

World Trade Organization rules allow a government to unilaterally declare an emergency and make or sell patented drugs without the permission of the drug companies. At the same time, however, such an ability of a government to suspend a company's drug patent can prove a powerful bargaining chip in reducing prices. For example, in July 2005, Brazil reached an agreement with Abbott that lowered the price of Kaletra while preserving the company's patent on the drug.

Thailand ’s Ministry of Health said the controversial move was necessary to ensure that sick people had access to affordable drugs. The Wall Street Journal (Subscription required)

URL: http://www.pharmadd.com/topnews/January 30 2007.asp