'Progress' made over Thai access to cheaper us drugs

The Commerce Ministry, the Pharmaceutical Research and Manufacturers of America (PhRMA) and the Biotechnology Industry Organisation (BIO) have agreed in principle to increase Thais' access to cheaper drugs by encouraging cooperation on research and innovation rather than imposing compulsory licensing.

Cooperation on research and development would ensure Thailand has the capability to produce cheaper, quality medicines. It would also abate a major controversy between the government and international drug companies, as compulsory licensing would be used by the government only as a last resort in the future.

Deputy Commerce Minister Alongkorn Ponlaboot, on a visit to the United States, said the government had reaffirmed to the PhRMA that Thailand would not, however, abolish compulsory licensing.

"But I confirmed to them that compulsory-licensing declarations would be the last resort for the government if drug companies were committed to helping Thai people gain access to cheaper, quality drugs.

"The PhRMA and the BIO have acknowledged the government's attempt to both protect intellectual-property (IP) rights and take care of people's lives," said Alongkorn. "Therefore, they will help us develop our research and development on medicine production and seek new solutions to allow people to access cheaper, quality drugs."

Compulsory licensing is a controversial measure under which the government can disclose the formulas of drugs patented by foreign companies so that the medicines can be produced and distributed cheaply and in good time.

As an initial step, the BIO has invited Thai researchers, scientists and commercial officers to join its biotechnology seminar from May 18-21 in Atlanta, Georgia so that the Kingdom can gain knowledge essential for developing its pharmaceutical industry.

Alongkorn said an action plan following this week's agreement between the US and Thai parties was expected to be produced in the next three months.

awareness of IP rights

The agreement was reached after a meeting between the PhRMA, the BIO and Thai officials in Washington, held following the PhRMA's recommendation to downgrade Thailand's trade status to that of Priority Foreign Country.

The Kingdom was put on the Priority Watch List two years ago, due mainly to the Surayud Chulanont administration's imposition of compulsory licensing for certain drugs.

If Thailand were downgraded to Priority Foreign Country, it would mark it as among the weakest countries in terms of awareness of IP rights.

It would then face more export barriers, as it could be expected to lose tariff privileges under the US Generalised System of Preferences.

Alongkorn said because the current Thai government had been in office for only three months, Thailand's trade status should be maintained on the Priority Watch List.

However, he added, it is hoped the government's increased efforts to crack down on IP violations and protect rights will result in an upgrade to Watch List status next year.

Brian Toohey, the PhRMA's senior vice president for international affairs, said the organisation was very encouraged by Yesterday's agreement to cooperate.

Unlike during the past two years, it is now extremely confident about being able to bring products for patent registration in Thailand, he said.

"We have come up with a better solution - to get medicines by negotiating. We hope to help Thailand develop technology for the industry, as compulsory licensing is not the best solution for us," he said.

"Although we cannot change Thailand's downgraded trade status, we will communicate to the US government the positive attitude with regard to Thailand's efforts to protect intellectual property rights."

The US Trade Representative will finalise its revision of the special report on each country's trading status by the end of next month.

Meanwhile, Levi Strauss, the US jeans and lifestyle-goods manufacturer, has expressed concern about the registration of fake trademarks in Thailand.

It called on the Thai government to be very careful about which trademarks could be registered, saying some created confusion among consumers.