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| Brazil to break Aids drug patent | Brazil to break Aids drug patent |
| (30 minutes later) | |
| The president of Brazil has authorised the country to bypass the patent on an Aids drug manufactured by Merck, a US pharmaceutical giant. | The president of Brazil has authorised the country to bypass the patent on an Aids drug manufactured by Merck, a US pharmaceutical giant. |
| The country will import a cheaper, generic Indian-made version of the patented Efavirenz drug. | The country will import a cheaper, generic Indian-made version of the patented Efavirenz drug. |
| The decision came after talks between Brazil and the US company broke down. | The decision came after talks between Brazil and the US company broke down. |
| Merck had offered Brazil a 30% discount on the cost of the drugs but the country wanted to pay the same price as Thailand, which gets a larger discount. | Merck had offered Brazil a 30% discount on the cost of the drugs but the country wanted to pay the same price as Thailand, which gets a larger discount. |
| Merck offered Brazil almost a third off the cost - pricing the pills at $1.10 (£0.55) instead of $1.59. | Merck offered Brazil almost a third off the cost - pricing the pills at $1.10 (£0.55) instead of $1.59. |
| But Brazil wanted its discount pegged at same level as Thailand, which pays just $0.65 per pill. | But Brazil wanted its discount pegged at same level as Thailand, which pays just $0.65 per pill. |
| Now, though, it will source Indian-made versions of Efavirenz for just $0.45 each. | Now, though, it will source Indian-made versions of Efavirenz for just $0.45 each. |
| "The compulsory licensing of Efavirenz is a legitimate and necessary measure to guarantee that all patients have access to the drug," President Luiz Inacio Lula da Silva's office said in a statement. | |
| Small royalty | Small royalty |
| Brazil's decision means that Merck, which holds the patent for the drugs, will only get a small royalty for the generic versions of the drugs purchased. | Brazil's decision means that Merck, which holds the patent for the drugs, will only get a small royalty for the generic versions of the drugs purchased. |
| Under Brazilian law and rules established by the World Health Organisation, such a licence can be granted in a health emergency or if the pharmaceutical industry abuses its pricing. | |
| Some 75,000 Brazilians use Efavirenz, out of a total of 180,000 people who receive free antiretroviral drugs from the government. | |
| Thailand's decision to break Merck's Efavirenz patent, as well as drugs produced by two other firms, led to the country being placed on a US list of copyright violators. | Thailand's decision to break Merck's Efavirenz patent, as well as drugs produced by two other firms, led to the country being placed on a US list of copyright violators. |
| The company said that Brazil's decision could discourage pharmaceutical firms from investing in treatments for illnesses prevalent in the developing world. | The company said that Brazil's decision could discourage pharmaceutical firms from investing in treatments for illnesses prevalent in the developing world. |
| Brazil's move, Merck said, sent "a chilling signal to research-based companies about the attractiveness of undertaking risky research on diseases that affect the developing world." | Brazil's move, Merck said, sent "a chilling signal to research-based companies about the attractiveness of undertaking risky research on diseases that affect the developing world." |