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FACTBOX-Pharmaceutical skirmishes: from HIV to bird flu
08 Feb 2007 09:13:58 GMT
Source: Reuters

Feb 8 (Reuters) - Indonesia's refusal to share bird flu virus samples with foreign laboratories risks undermining the WHO's global influenza protection system, a WHO official and Australia's leading laboratory said on Thursday.

Here are some recent skirmishes that have seen developing countries protest against pharmaceutical companies' drug patents:

BIRD FLU VACCINE - INDONESIA:

- Indonesia has been condemned for giving its H5N1 bird flu virus samples to U.S. firm Baxter <BAX.N> under a pact signed on Feb. 7, rather than providing them voluntarily to the WHO.

- Under the agreement, Baxter will provide technology to help develop a vaccine, while Indonesia, the country worst hit by the virus, will produce and market the bird flu vaccine domestically. It is also negotiating to export it to a number of countries.

- Indonesia argues that developing countries are disadvantaged by the prevailing system, which allows drugmakers to use these samples to make vaccines that citizens of third world countries often cannot afford to buy.

LEUKEMIA DRUGS - INDIA:

- Hundreds of Indian activists protested last month against Swiss drugmaker Novartis <NOVN.VX>, which tried to patent a new version of Gleevac, a popular leukemia drug.

- Several Indian firms would be banned from making the generic versions they currently sell for one-tenth of the price Novartis charges (US$2,600 for a monthly dose).

- Millions would be unable to afford the medicine if the company wins its civil suit, protesters say.

HIV/AIDS AND HEART DISEASE - THAILAND:

- Thailand's army-installed government stunned drug firms last month by issuing licences for two cheap generic drugs to treat heart disease and control HIV/AIDS, citing ballooning health costs.

- The country issued its first compulsory licence to make half-price versions of the anti-retroviral HIV-AIDS drug Efavirenz in late November 2006, drawing protest from patent-holder Merck & Co Inc <MRK.N> which sells it for 1,400 baht ($38.84) per month.

LEGAL BACKGROUND:

- The WTO's general Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement gives 20 years patent protection to pharmaceutical drugs.

- Under 2001 World Trade Organisation rules, a government may declare a national emergency and licence the sale or domestic production of a patented drug without the patent holder's permission.

- Because disporportionately affected developing countries lack drug-producing capacity, the least-developed countries have a deadline extension to 2016 to comply with pharmaceutical patents.

INTERNATIONAL MARKET:

- The global pharmaceutical product market is worth US$300 billion a year the WHO estimates, and is expected to rise to US$400 billion within three years.

- The 10 largest drug companies control a third of the market. Six are based in the U.S. and four in Europe.

Sources: Reuters, The World Health Organisation (www.who.int/trade/glossary/story073/en), The World Trade Organisation (http://192.91.247.23/english/tratop_e/trips_e/pharma_ato186_e.h tm and www.wto.org/english/thewto_e/whatis_e/tif_e/agrm7_e.htm) (http://ipsnews.net/news.asp?idnews=33300)
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A worker weighs chickens before sending them to a market from a poultry storehouse in Jakarta January 14, 2007. Indonesia has restricted sharing bird flu strain samples overseas to ensure its people benefit from any vaccine and to stop foreign parties "dancing over the corpses of others", the health minister said on Thursday.