Abbott Laboratories has backed down from a high-profile confrontation with the Thai government over patent protection for a popular Aids treatment.

Bangkok-based health activists, however, argued that Abbott's move was just another "trick" and said there was nothing to guarantee that Thais could have access to the lower-priced drugs.

Paul Cawthorne, head of mission of Doctors Without Borders in Bangkok, said Abbott had tricked the public by announcing a few weeks ago it would reduce the price for Aluvia - the latest version of its Aids drug Kaletra - in Thailand. He said the drug was not available as it was one of seven new drugs Abbott decided not to register with the Thai government.

Abbott is to introduce Aluvia in Thailand and sell it at a discounted rate, chief executive Miles White said yesterday.

The move reverses Abbott's decision in February to withhold Aluvia from Thailand following a government announcement that it would allow sales of generic versions of Abbott's Aids drug and other brand medicines in order to give patients access to less expensive treatment.

"In this particular case, in the name of access for patients, we offered to resubmit Aluvia at our new price, which is lower than any generic, provided they wouldn't issue a compulsory licence," White said.

As for the company's initial decision not to sell its new drugs in the country, he explained: "What motivated us was concern that compulsory licensing would be abused ever more widely, using HIV as an excuse." 

Jennifer Smoter, a spokeswoman for Abbott, claimed Thailand's Health Ministry had expressed interest in the offer but that no resolution had been reached.

Abbott's move doesn't affect its decision to withhold six other drugs from Thailand.

Mongkol na Songkla, the public health minister, was not available for comment yesterday.

Cawthorne suggested that the government should not stop the compulsory licensing process, saying that it was the key for Thais to access high-quality drugs at a cheap price. Cawthorne said he did not believe the company would actually register the drugs in Thailand.

"We will not believe it until we see patients taking the medicine," he said.

The global pharmaceutical industry increasingly relies on emerging markets such as Thailand to compensate for slowing growth in home markets.

"The symbolic implications are massive," says Gustav Ando, an analyst for Global Insight, an economic-forecasting firm in the US.

"The drug industry is very well aware of what this means. If one country does it, that means any country can do it. This is the front-line battle at the moment. It's not going to stop there."

Illinois-based Abbott tried to defy Thailand's initiative in February, refusing to sell the country seven of its newest drugs.

Abbott received some support from other drug makers, who argued that Thailand's decision to withdraw patent protection for some of their products undermined their ability to fund new research that ultimately benefits all patients.

But the unprecedented move appeared to backfire, prompting consumer boycotts in Thailand, bringing human-rights advocates out in support of Thailand's policy and provoking protests from some Abbott shareholders who argued Abbott should sell its latest drugs in Thailand.

Thailand is a fast-growing market for Abbott, generating about US$30 million (Bt978 million) a year in sales for the company, according to a person familiar with the company's sales. Abbott declined to specify the size of its market in Thailand.

In backing down, Abbott is joining Merck and Co and Sanofi-Aventis SA, which have already cut the price of their Aids and heart-disease drugs in the hope of dissuading Thailand from switching to less expensive alternatives.

Thailand could still choose to import generic drugs to replace Abbott's, however, just as it is now using generic versions of Merck's Aids drug Efavirenz, despite Merck's own move to lower prices.