Thailand health minister has threatened to break the foreign patents of 14 HIV/AIDS, oncology and cardiology drugs in an attempt to lower medication prices, a decision that may prompt companies to withhold new drugs from the Thai market.
“This action is completely unprecedented anywhere in the world,” said Teera Chakajnarodom, president of the Pharmaceutical Research and Manufacturers’ Association of Thailand, which has 43 member drug firms.
The ministry has already announced compulsory licenses for three of the 14 drugs, allowing it to make generic versions of Sanofi-Aventis blockbuster Plavix; Abbott’s HIV treatment, Kaletra, and Merck’s HIV drug, Stocrin.
The move is justified; say the ministry, under international trade laws that permit compulsory licensing in the event of a national public health crisis.
Foreign pharmaceutical manufacturers say Thailand’s military-appointed government gave no notice to the affected companies before issuing the compulsory licenses.
“When governments resolve to take away the property of the private sector, they need to begin with consultation and end with the consent of the property owner,” Teera said.
The licenses, which Thai health officials said would save the country up to US $24 million a year, drew praise from AIDS activists but criticism from the pharmaceutical industry and the World Health Organisation (WHO).
In a letter to the Thai government, WHO director-general Margaret Chan advised the country to negotiate with drug companies before overriding patents, adding “I firmly believe that the pharmaceutical industry (generic manufacturers and R&D companies) are part of the solution.”
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