Brazilian patent threat poses challenge to big pharma

Relying on its reputation as a world leader in HIV/AIDS drug pricing negotiations, Brazil is threatening to disregard patents unless Abbott Laboratories, Gilead Sciences and Merck & Co. allow it to produce generic versions of their four leading AIDS drugs. Datamonitor's Mar Ferrero investigates the likely ramifications of such a move...

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Breaking Merck patent may drive investment away from Brazil

Brazil's government will bypass Merck's patent on HIV drug Sustiva in order to manufacture this best-selling NNRTI as a lower-priced generic. Although this will increase therapy-access for many HIV/AIDS patients, it will intensify concerns over parallel imports into Western markets, according to Datamonitor's HIV analyst Lisette Oversteegen.

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GlaxoSmithKline: cutting the cost of HIV drugs

GlaxoSmithKline's fifth round of price cuts since 1997 includes 14 HIV drugs reduced by an average of 21%. The biggest reduction is a 40% cut in the price of Ziagen, a first and second line AIDS treatment. With the use of compulsory licenses becoming more frequent among developing countries, GSK will hope that such price cuts appease governments and prevent their patents being bypassed.

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HIV drugs: patent disputes escalate

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HIV patents: no solution - yet

While the WTO has not yet made a breakthrough on the issue of patent-free HIV drugs for developing economies, something must be done to alleviate the human and economic cost of the HIV epidemic. Western pharma companies will inevitably lose out - the only question is how well their profit maintenance strategies can cushion the blow.

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