"Discrimination in Media Reporting on Brazil," say NGOs

"Brazil is not breaking patent rules; it is breaking a monopoly that keeps medicines outrageously expensive for the profit of multinational pharmaceutical companies," says Dr. Eric Goemaere, of Medecins sans Frontieres.

By granting a compulsory license, Brazil is only doing what the United States and the European Union regularly do, within the rules of the World Trade Organization. For example, on 16 August the US Department of Justice's Antitrust Division announced it would use a compulsory license on a company's portfolio of patents in the field of stereolithography. On 3 July, the EU granted one in Germany for a database on pharmaceutical sales.

"There is a double standard in the reporting and it discriminates against developing countries. When the US issues a compulsory license, it is defending consumer interests. When Brazil does it, it is demonized, risks legal action and trade sanctions," points out Dan Mullins, HIV/AIDS coordinator for Oxfam in southern Africa.

Brazil announced its decision after six months of failed negotiations on price reductions with Swiss pharmaceutical company Roche. As part of the drug therapy, Nelfinavir is given to one-quarter of Brazil's 100,000 AIDS patients under treatment. It costs Brazil US$85 million a year -- nearly one-third of its US$303 AIDS budget. The government sought a reduction of 40% from Roche, equal to what it would save by producing it locally as a generic, and offered the average 5% in royalties.

Of the dozen drugs given to patients, Brazil produces eight as cheap generics. Another three have reasonable prices because earlier this year Brazil negotiated with Merck a price reduction of roughly 70%.

Brazil's AIDS plan, which includes widespread information, voluntary testing with counseling, and free retroviral treatment, is credited with halving AIDS-related deaths, reducing AIDS-related hospitalizations by 80% and drastically diminishing mother-to-child transmission. Its program is hailed by the United Nations as a model for developing countries.

Earlier this year, the United States threatened to take Brazil to the World Trade Organization for infringing patent rules hut dropped the case.

"We urge African governments and peoples to support Brazil's move. We call on the South African government to issue compulsory licenses for essential medicines, and thus help break Big Pharma's monopoly over the health of our people," said Mark Heywood, secretary-general of TAC.

(ENDS)

For information, please contact:
Dr. Eric Goemaere, Medecins sans Frontieres, tel +27-(0)21-364-5490
Mark Heywood, Treatment Action Campaign, tel +27-(0)11-717-8634
Mercedes Sayagues, Oxfam GB, tel +27-(0)82 - 448 - 3299
Dan Mullins, Oxfam GB, tel +27-(0)12-362-2118

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