A little sparring took place at the drugmaker’s annual meeting over the tussle between Abbott and the Thai government. Miles White, Abbott’s ceo, offered new details of the decision to withhold seven new drugs from Thailand - including a heat-resistant version of HIV med Kaletra - to protest the Thai government’s move to break patents and give patients access to cheaper generics.

And he was also quite blunt in responding to a Thai activist’s critical comments. White said the Thai government broke the patent even after Abbott agreed last fall to a price cut, from $2,200 a year to $1,700 per patient.

“The government told us no price that we would offer would matter. They told us they already had a supplier lined up. Why would we need to provide the product if a generic company is
providing the product?”

Abbott’s decision to withhold the meds from Thailand has been sharply criticized by AIDS activists and patient-advocacy groups. Last week, White softened his stance, saying Abbott would sell the new version of Kaletra at a discount if Thailand honored the patent, though he still refuses to sell the six other new medications. So far, he said, there’s been no repy.

Jon Unghakorn, a former Thai senator and executive director of the AIDS Access Foundation, told White during the meeting that Abbott is ““retaliating by withdrawing drugs. You are putting patients as hostages.” His comments drew a smattering of applause and boos from the
crowd of 1,400 shareholders.

The World Trade Organization rules allow governments to issue generic licenses for patented drugs – called “compulsory licenses” – in cases of national emergency. But White said he worries Thailand and other nations could use those rules to break patents on dozens of other medications.

The financial risk to Abbott over the Thailand flap is minimal despite the bad publicity, said says Morningstar analyst Heather Brlliant. The country reportedly accounts for just $30 million of Abbott’s $22.5 billion in annual revenue. However, the problem threatens to widen as other countries study the controversy and threaten to mimic the Thai government.

“Any business risk to Abbott would be a problem for all of Big Pharma. How are they going to deal with patent issues in emerging countries?” she asked.

Source: Crain’s Chicago Business

[tags]Abbott Laboratories, AIDS, Compulsory Licensing, Generics, Kaletra, Patents, Thailand[/tags]