Brazil opts for Indian generic drugs ignoring US pharmaceutical giant Merck’s

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A new trend in emerging nations - Brazil opts for Indian generic drug

ignoring US pharmaceutical giant Merck's patent on AIDS drug

Efavirenz

Media Release. May 6, 2007

Brazilian president Luiz Inacio Lula da Silva has allowed his country

to ignore US pharmaceutical giant Merck's patent on AIDS drug

Efavirenz and opted for a cheaper generic alternative from India.

With a decree he signed on Friday, Brazil will be able to import

generic versions of Efavirenz from three companies in India — and the

price for the drugs will be 72% lower than the price charged by

Merck. Brazil had been negotiating with Merck for three years to

bring down the Efavirenz price.

Lula had criticised Merck for charging higher prices to Brazil than

to other countries, an attitude he regarded as " disrespectful " .

According to the ministry, Merck charges Brazil $1.59 per capsule but

Thailand pays only 64 cents. Merck initially proposed a 2% reduction

in the Efavirenz price, which the Brazilians rejected.

On April 25, the Brazilian government classified the drug as one " of

public interest " and asked Merck to present another proposal within

seven days. Merck offered a 30 percent price cut but the Brazilian

authorities still considered it unsatisfactory because it was

possible to buy the generic version of the medicine for as low as

$0.45.

Minister of health Gomes Temporao then advised president Lula to

sign the decree establishing the " compulsory license " for the anti-

HIV drug allowing Brazil to import the drug at lower prices from

other overseas suppliers or even produce it locally.

http://www.indiadaily.com/editorial/16665.asp