Abbott Plans Its Own Coup In Thailand
Make a commentBy Ed Silverman // March 13th, 2007 // 7:29 am

The drugmaker is refusing to sell new drugs there in response to the military government’s move to issue compulsory licenses for several medicines, including its own Kaletra AIDS treatment. Applications to market seven new drugs were yanked, according to a story in The Wall Street Journal, which cites unnamed sources.
Big pharma is furious that the Thai government has pulled patent protection on Kaletra and the Plavix blood thinner, which is sold by Britsol-Myers Squibb and Sanofi-Aventis, especially since industry claims there were no prior discussions. Under World Trade Organization rules, there are certain situations, such as national emergencies, that permit countries to issue complusory licenses, but drugmakers say Thailand has gone too far.
But refusing to sell new drugs may backfire. Abbott may score some points by acting tough and claiming WTO rules were somehow violated. In general, the company has every right to defend its patents, and sometimes playing hardball produces desired results. Supposedly, Abbott will continue to sell other meds, and so hopes to avoid accusationos that its unwilling to provide any medication at all to those in need.
Yet, denying patients certain necessary medications is only likely to galvanize criticism and put Abbott in the unenviable position of arguing about technicalities with people who talk about life and death. Abbott’s ceo, Miles White, should chat with Dan Vasella over at Novartis about how much fun he’s having trying something similar in India.
“It’s not good for anyone, even the American company because they will lose the market,” says Thawat Suntrajarn, director general of the Ministry of Health’s department of disease control, who tells the Journal that he was unaware of Abbott’s decision.
Maybe Abbott is frustrated with US Trade Rep Susan Schwab. She wrote Congressman Tom Allen, a Maine Democrat, a letter on Jan. 17 in which she indicated Thailand didn’t actually breach WTO rules. And in a March 12 letter Allen, Henry Waxman and others are keeping the pressure on her not to change her position.
Abbott’s White may claim the Thai military government is putting a gun to his head. And so he’s chosen to wield a weapon of his own. But this is no ordinary showdown. Caught in the looming crossfire are any number of sick, or soon-to-be-sick, Thai citizens. And if neither side finds a way to compromise, the ordinary patient will be the first to suffer.
[tags]Abbott Laboratories, Compulsory Licensing, Patents, Thailand[/tags]