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Viewing cable 07BANGKOK598, RTG OPEN TO DISCUSSIONS WITH PHARMA "AFTER CL'S ARE

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Reference ID Created Released Classification Origin
07BANGKOK598 2007-01-30 23:41 2011-08-25 00:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Bangkok
VZCZCXRO3066
RR RUEHCHI RUEHDT RUEHHM RUEHNH
DE RUEHBK #0598 0302341
ZNR UUUUU ZZH
R 302341Z JAN 07
FM AMEMBASSY BANGKOK
TO RUEHC/SECSTATE WASHDC 4440
RUCNASE/ASEAN MEMBER COLLECTIVE
RUEHGV/USMISSION GENEVA 1771
RUCPDOC/USDOC WASHDC
RUEAUSA/DEPT OF HHS WASHINGTON DC
UNCLAS BANGKOK 000598 
 
SIPDIS 
 
SENSITIVE 
 
SIPDIS 
 
STATE PASS USTR FOR B. WEISEL, C. WILSON 
STATE PASS USPTO 
HHS/OHGA FOR AMAR BHAT, ERIKA ELVANDER 
USDOC FOR JKELLY 
 
E.O. 12958:N/A 
TAGS: ECON ETRD KIPR TH
SUBJECT:  RTG OPEN TO DISCUSSIONS WITH PHARMA "AFTER CL'S ARE 
ISSUED" 
 
 
1.  On January 29, Minister of Public Health Mongkol na Songhkla 
issued a statement officially announcing compulsory licenses (CL) on 
Abbott Labs' HIV medicine Kaletra, and the heart medication Plavix, 
distributed by Sanofi-Aventis.  The official notification for 
Kaletra was signed on January 24, and for Plavix the following day. 
According to the statement, the CL on Kaletra will be effective for 
five years, but for Plavix will have no expiration date. 
 
2.  Mongkol's statement offered an opening of sorts to 
pharmaceutical firms, saying that the government would ask for 
voluntary price reductions from the firms before exercising 
compulsory licenses.  He added less than magnanimously that, "if we 
can buy the original drug at a price not higher than that available 
in other places, we are willing to buy it."  In other words, any 
pharmaceutical firm that markets a patented life-saving drug at a 
higher price than available generics faces the prospect of a 
compulsory license. 
 
3.  In a phone conversation with Econoff, Dr. Suwit Wibulpolprasert, 
the Senior Advisor on Health Economics to the Minister of Public 
Health and a driving force behind the CLs, claimed that the Ministry 
was open to meeting with pharmaceutical firms to discuss pricing, 
but only after the CL was issued.  Suwit said that the Ministry had 
opted against negotiating beforehand with patent holders, having had 
no luck in previous discussions.  He insisted that negotiations 
would only have delayed the process and would not have resulted in 
lower prices, and noted that WTO rules did not require prior 
negotiations when used for public non-commercial use.  Suwit said 
despite pharmaceutical companies protests to the contrary there were 
3-4 cases of prior discussions they could publicize, but chose not 
to so that "the companies wouldn't lose face." 
 
4.  Pharmaceutical firms are up in arms over the newest declaration 
and are mulling their options, including pursuing litigation. 
Lawyers for the local pharmaceutical association (and attorneys of 
record for many of the local firms) say they plan to file an appeal 
to the Board of Patents on the CL on Merck's drug efavirenz.  Thai 
law offers the opportunity to appeal a CL decision within 60 days of 
receiving notice of the decision.  Although there was no official 
government decree, Merck received notification on December 12, and 
thus plan to file their appeal by February 9 to meet the deadline. 
Any further litigation on this and other products may have to wait 
until actual deliveries of generic versions of the drug are made in 
Thailand. 
 
5.  The Swiss Ambassador brought up the CL issue on January 29 with 
Minister of Commerce Krirk-krai Jirapaet, but the Minister simply 
referred the matter to the Ministry of Public Health.  Merck had 
earlier reported that the Minister had pledged in a meeting with 
them that no more compulsory licenses would be issued, but with the 
Swiss he offered no more assurances other than that Thailand would 
respect its international commitments. 
 
Comment 
------- 
 
6.  The Ministry of Public Health remains determined to forge ahead 
with its CL plans, and feels that it is in a strong negotiating 
position.  To date, no RTG ministries seem to be either willing or 
able to intervene in the CL process.  Our impression is that, in 
terms of group dynamics, the CL process is one "aye" (the MoPH) in a 
room full of no-comments (the other ministries).  Local media 
coverage has been minimal and, aside from coverage of PReMA's press 
release, uncritical.