HIV :: Merck’s Thai price cut must come without strings on generics, says AHF

AIDS Healthcare Foundation (AHF), the US? largest provider of HIV/AIDS healthcare, education and prevention and operator of free AIDS treatment clinics in the US, Africa, Latin America/Caribbean and Asia, today praised Merck for its decision to offer to reduce the price of its antiretroviral drug, efavirenz (marketed outside the US under the brand name Strocrin), in Thailand, but chided the multinational drug company for making the price cut offer contingent upon the Government of Thailand revoking a compulsory license it had issued in November 2006 for the manufacture and/or importation of a generic version of the drug.

Since November, Merck and Thailand have been in negotiations over pricing and access to the drug, and this latest offer also includes the provision?at no-cost?of a liquid pediatric form of efavirenz to 2,500 Thai children, as well as offering testing and treatment access for children.

?We believe Merck?s latest offer to Thailand is a good one; however, it should not be contingent upon Thailand revoking the compulsory license it issued for efavirenz,? said Michael Weinstein, President of AIDS Healthcare Foundation. ?Thailand adhered to applicable international law when it issued the license back in November in an effort to increase access to affordable lifesaving AIDS drugs for its citizens, and we commend the government for trying to do the right thing for its citizens in need. We strongly urge Merck to remove its demand that Thailand revoke the compulsory license from this otherwise improved and expanded offer.?

?Only generic competition will ensure the lowest price is paid for lifesaving AIDS drugs globally, so we believe that Thailand and other countries should continue to explore and utilize World Trade Organization-granted rights such as compulsory licensing as a means to protect the public health,? said Mena Gorre, Public Affairs Manager for AIDS Healthcare Foundation. ?Global pricing for AIDS drugs by Merck and most other pharmaceutical companies seems to be as random as throwing darts at a map. We believe the ability to use compulsory licensing by countries contributes to a healthy system of checks and balances in negotiations between drug companies and countries. The process of setting appropriate and affordable prices for these medications should be done with as much transparency as possible to ensure that the industry does not run roughshod over the rights of countries and people in need.?


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