The drugmaker has agreed to lower the cost to $1,000 per patient per year in more than 40 low- and middle-income countries, as defined by World Bank criteria. This includes India, Brazil and China. And Abbott will “immediately begin discussions with countries where (its) patents are respected” to increase the number of patients who can obtain Kaletra at the new price.

And what about Thailand? Abbott says it “fully respects and appreciates the suggestion of World Health Organization director-general Margaret Chan that more work needs to be done with the government of Thailand to achieve a positive outcome.” Meanwhile, Kaletra capsules remains available in Thailand at the new price, as opposed to the older $2,200 price.

This is the first sign that Abbott is doing something other than playing hardball with the Thai military government, which recently issued compulsory licenses for Kaletra and two other drugs sold by Merck and Sanofi-Aventis. Unlike the others, Abbott has refused to negotiate and, instead, threatened not to sell new meds in the country.

Unfortunately, this statement is worded so vaguely that it’s hard to tell what, if anything, Abbott is doing besides lowering its price. Has Miles White and his team agreed to wide-open talks? Is the drugmaker backing away from its threat not to sell new drugs there? Or is the wording a polite way to tell Chan that she’s not doing enough?

An Abbott spokeswoman says the drugmaker has “been willing to talk” to the Thai government, and denies reports that Abbott isn’t attending a session this week involving Thai officials, Merck and Sanofi-Aventis. However, the company isn’t interested in discussing royalties on generic versions of Kaletra. And for now, Abbott isn’t changing its mind about selling new meds there.

The drop in price is clearly designed to defuse tensions, and not just in Thailand. Whether the move will soften the Thai military is another matter. The government seems determined to stick to its plan to issue compulsory licenses, and that could mean more showdowns.

UPDATE AT 11 AM EST: The Associated Press is reporting the offer as a ‘breakthrough,” and that the health ministry will take a closer look.

“Abbott did not say that they wanted us to revoke the compulsory license. There was no condition. They were just here to offer the price reduction so that people can have access to their medicines,” Suchart Chongprasert, a Thai FDA official, say. “We want to thank the company for their understanding of our position and the offer that they made which will benefit Thai patients.”

The complete Abbott statement is here.
The Associated Press story today;
The Bangkok Post yesterday on Abbott shunning talks.[tags]Abbott Laboratories, AIDS, Compulsory Licensing, Kaletra, Patents, Thailand[/tags]