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### Viewing cable 07BANGKOK598, RTG OPEN TO DISCUSSIONS WITH PHARMA "AFTER CL'S ARE

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Reference ID | Created | Released | Classification | Origin
--- | --- | --- | --- | ---
07BANGKOK598 | 2007-01-30 23:11 | 2011-02-06 21:09 | UNCLASSIFIED//FOR OFFICIAL USE ONLY | Embassy Bangkok

`

    VZCZCXRO3066
    RR RUEHCHI RUEHDT RUEHHM RUEHNH
    DE RUEHBK #0598 0302341
    ZNR UUUUU ZZH
    R 302341Z JAN 07
    FM AMEMBASSY BANGKOK
    TO RUEHC/SECSTATE WASHDC 4440
    RUCNASE/ASEAN MEMBER COLLECTIVE
    RUEHGV/USMISSION GENEVA 1771
    RUCPDOC/USDOC WASHDC
    RUEAUSA/DEPT OF HHS WASHINGTON DC

` `

    UNCLAS BANGKOK 000598

    SIPDIS

    SENSITIVE

    SIPDIS

    STATE PASS USTR FOR B. WEISEL, C. WILSON
    STATE PASS USPTO
    HHS/OHGA FOR AMAR BHAT, ERIKA ELVANDER
    USDOC FOR JKELLY

    E.O. 12958:N/A
    TAGS: ECON ETRD KIPR TH
    SUBJECT: RTG OPEN TO DISCUSSIONS WITH PHARMA "AFTER CL'S ARE
    ISSUED"

    ¶1. On January 29, Minister of Public Health Mongkol na Songhkla
    issued a statement officially announcing compulsory licenses (CL) on
    Abbott Labs' HIV medicine Kaletra, and the heart medication Plavix,
    distributed by Sanofi-Aventis. The official notification for
    Kaletra was signed on January 24, and for Plavix the following day.
    According to the statement, the CL on Kaletra will be effective for
    five years, but for Plavix will have no expiration date.

    ¶2. Mongkol's statement offered an opening of sorts to
    pharmaceutical firms, saying that the government would ask for
    voluntary price reductions from the firms before exercising
    compulsory licenses. He added less than magnanimously that, "if we
    can buy the original drug at a price not higher than that available
    in other places, we are willing to buy it." In other words, any
    pharmaceutical firm that markets a patented life-saving drug at a
    higher price than available generics faces the prospect of a
    compulsory license.

    ¶3. In a phone conversation with Econoff, Dr. Suwit Wibulpolprasert,
    the Senior Advisor on Health Economics to the Minister of Public
    Health and a driving force behind the CLs, claimed that the Ministry
    was open to meeting with pharmaceutical firms to discuss pricing,
    but only after the CL was issued. Suwit said that the Ministry had
    opted against negotiating beforehand with patent holders, having had
    no luck in previous discussions. He insisted that negotiations
    would only have delayed the process and would not have resulted in
    lower prices, and noted that WTO rules did not require prior
    negotiations when used for public non-commercial use. Suwit said
    despite pharmaceutical companies protests to the contrary there were
    3-4 cases of prior discussions they could publicize, but chose not
    to so that "the companies wouldn't lose face."

    ¶4. Pharmaceutical firms are up in arms over the newest declaration
    and are mulling their options, including pursuing litigation.
    Lawyers for the local pharmaceutical association (and attorneys of
    record for many of the local firms) say they plan to file an appeal
    to the Board of Patents on the CL on Merck's drug efavirenz. Thai
    law offers the opportunity to appeal a CL decision within 60 days of
    receiving notice of the decision. Although there was no official
    government decree, Merck received notification on December 12, and
    thus plan to file their appeal by February 9 to meet the deadline.
    Any further litigation on this and other products may have to wait
    until actual deliveries of generic versions of the drug are made in
    Thailand.

    ¶5. The Swiss Ambassador brought up the CL issue on January 29 with
    Minister of Commerce Krirk-krai Jirapaet, but the Minister simply
    referred the matter to the Ministry of Public Health. Merck had
    earlier reported that the Minister had pledged in a meeting with
    them that no more compulsory licenses would be issued, but with the
    Swiss he offered no more assurances other than that Thailand would
    respect its international commitments.

    Comment
    -------

    ¶6. The Ministry of Public Health remains determined to forge ahead
    with its CL plans, and feels that it is in a strong negotiating
    position. To date, no RTG ministries seem to be either willing or
    able to intervene in the CL process. Our impression is that, in
    terms of group dynamics, the CL process is one "aye" (the MoPH) in a
    room full of no-comments (the other ministries). Local media
    coverage has been minimal and, aside from coverage of PReMA's press
    release, uncritical.

`