Thailand initiates compulsory licensing

Thailand's Ministry of Public Health has started to issue compulsory licenses, with its decision to produce life-saving medicines at lower prices, starting with Merck & Co's HIV/AIDS drug Sustiva (efavirenz). The license will be valid for five years and is expected to reduce the cost of efavirenz 50%, from $67.00 a month to $38.50, according to the Ministry's Thawat Suntrajarn, reported by the Kaisernetwork.org. It will save the government more than $100.0 million over the next five years.

Responding to this, Pharmaceutical Research and Manufacturers of America (PhRMA) president, Billy Tauzin, said: "the recent announcement...to issue a compulsory license without any attempt to negotiate with the patent owner is of grave concern. This action appears to be inconsistent with the procedures in Thailand's own patent statute. The affected company stated publicly that they are prepared to work closely with the Thai authorities to resolve this matter. We strongly urge the Thai government to engage the company in discussions."