Healthy Skepticism Library item: 10021

Warning: This library includes all items relevant to health product marketing that we are aware of regardless of quality. Often we do not agree with all or part of the contents.

Publication type: news

Merck Disappointed with Brazil over Patent Breach; India Pharma to Benefit
SeekingAlpha 2007 May 7
http://biz.yahoo.com/seekingalpha/070507/34684_id.html?.v=1

Full text:

Brazil’s President broke the patent on Merck’s Efavirenz AIDS drug after a 30% price cut to $1.10/pill came up well short of the government’s desire to having pricing on par with Thailand’s $0.65/pill. The President declared: “Our decision today involves this one drug, but we can take the same steps with any other that we consider necessary.” The government however, said it is still open to a renewed proposal from Merck if it decides to make one. Merck argued Brazil, as the world’s 12th largest economy, “has a greater capacity to pay for HIV medicines than countries that are poorer or harder hit by the disease.” Merck also said, “This expropriation of intellectual property sends a chilling signal to research-based companies about the attractiveness of undertaking risky research on diseases that affect the developing world ….” Bloomberg mentions Merck does not report sales of the drug in Brazil because they insignificant to its net revenues ($23b in 2006). Reuters reports the Mint (an Indian business daily) says Indian drug makers will benefit from Brazil’s decision and that talks to supply generic versions are already underway.