Brazil Threatens to Break AIDS Drugs Patents

Spending cutbacks in Brazil have the government once again threatening to strip AIDS drug patents if pharmaceutical companies do not cut prices, officials said. The move seeks to protect Brazil's AIDS treatment program, which provides free drugs to about 135,000 AIDS patients in the country.

On Friday, Brazilian officials met with representatives from Merck & Co., Roche Holding AG and Abbott Laboratories, whose three drugs comprise 63 percent of the total program costs, according to Alexandre Grangeiro, AIDS program coordinator at the health ministry.

The companies were told that they would need to cut the prices of the imported drugs, or relax patents to allow the government's laboratory, Far-Manguinhos, to produce them locally, said Grangeiro. Should the pharmaceutical companies not agree, Brazil will either produce the drugs or import cheaper generic drugs from India, he said. "Obviously, our intention is to reach an agreement with the industry," Grangeiro said.

Government spending restrictions have hit the AIDS budget for this year, said Grangeiro. At current prices, Brazil's AIDS program would cost 573 million reals (US$189 million) this year, but the Congress has only approved 516 million reals (US$168 million).

The two sides plan to meet again Aug. 12, according to Grangeiro.

Abbott, manufacturer of the HIV drug Kaletra, said in a statement it "remains committed to responsible pricing of Kaletra in Brazil." Abbott said the current price of Kaletra -- reached in a previous agreement with the Brazilian government -- is one of the lowest in the world. Roche and Merck did not respond to inquiries on Friday evening.

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