Brazil in new patent grab threat

The government of Brazil has announced that it intends to issue a compulsory license for US drugmaker Merck & Co's antiretroviral Stocrin (efavirenz), unless the firm issues a larger discount for the drug in South America reports Forbes Magazine. Brazil is considered to be a medium-sized developing country and does not therefore normally qualify for the deepest price rebates for drugs, despite the presence in the country of millions of poor people.

Merck reportedly has 10 days to negotiate a price reduction with Brazil's Health Ministry, according to a government statement. In response, Amy Rose, a company spokeswoman said: "Merck remains committed to reaching a negotiated agreement with Brazil's Ministry of Health." She added that "the company does not believe compulsory licensing is in the best interests of patients."