Three years ago, Thailand made waves by threatening to issue compulsory licenses for several best-selling meds, including Abbott Labs’ Kaletra AIDS drug. The Thai government argued needed meds were priced too high for most of it citizens and it had the right to override patents under provisions of a World Trade Organization agreement.

In March 2007, Abbott took a hard-line stance by yanking registration applications in Thailand for seven drugs (background). An activist group, KEI, which supported the Thai move to issue compulsory licenses, recently obtained a cable written by Ralph Boyce, who at the time was US Ambassador to Thailand, indicating the US was aware of the health consequences of Abbott’s move and that the hardball tactic could strengthen the industry’s hand in dealing with the threat of compulsory licensing.

The US, you may recall, placed Thailand on its Special 301 priority watch list for companies that fail to provide “an adequate level of intellectual property rights protection or enforcement, or market access for persons relying on intellectual property protection.” Abbott’s move prompted protests by AIDS activists (here and here).

R 142323Z MAR 07
FM AMEMBASSSY BANGKOK
TO: SECSTATE WASHDC 5544
ASEAN MEMBER COLLECTIVE
USMISSION GENERAL
USDOC WASHINGTON DC
DEPT OF HHS WASHINGTON DC
UNCLAS BANGKOK 001524
SIPDIS

STATE PASS USTR FOR B. WEISEL, C. WILSON
STATE PASS USPTO
HSS/OHGA FOR AMAR BHAT
USDOC FOR JKELLY
E.O. 12958:N/A
TAGS: ECON, ETRD, KIPR, TH

SUBJECT: ABBOTT LABS HALTS NEW DRUG REGISTRATIONS

1. Abbott Labs, the recent target of a compulsory license on their patented antiretroviral Kaletra, confirmed to Embassy that the company had withdrawn applications for registration of seven new pharmaceutical products in Thailand, and had no plans to introduce new products until its intellectual property was property respected. The seven drugs include Aluvia, a new heat-stable version of Kaletra. Although the two drugs are identical in effect, the new version is considered ideal for tropical environments such as Thailand. Other drug applications pulled include treatments for hypertension, kidney disease, auto-immune disease and congestive heart failure…

….

4. Comment: Abbott’s actions will certainly be controversial. However, the action may strengthen the hand of Abbott and the rest of industry in future dealings with the RTG. Abbott’s move puts the RTG on notice that there are visible consequences for its actions, rather than solely a vague weakening of the investment environment. Whether this focuses the minds of RTG officials at upcoming negotiations remains to be seen. End comment.

BOYCE