Companies Weigh Offer of Royalties for AIDS Drugs Aimed at Africa

Cipla has offered Bristol-Myers Squibb, Pfizer, GlaxoSmithKline, and Boehringer Ingelheim a proposal in which it would gain the rights to sell generic versions of their patented AIDS drugs in Africa in exchange for a 5 percent royalty fee. If the pharmaceutical companies decline Cipla's offer, the generic maker could turn to compulsory licensing provisions to sell its product in Africa without paying royalties. Foreign aid and revenues could drop if countries grant compulsory licensing rights, reducing the likelihood that such action would be taken. Cipla has also offered to sell an array of AIDS drugs to the group Doctors Without Borders at a considerably lower price than what large pharmaceutical companies are willing to charge to underdeveloped countries.

Other CDC News for February 16, 2001