Good for you, Lula

The President of Brazil, Luis Inácio ‘Lula’ da Silva, through his Ministry of Health, is demanding that Abbot Laboratories cut the price of its AIDS drug (Kaletra) by 42%. If they don't, Brazil will produce a generic version, Abbott's patents notwithstanding (via Redherring). It turns out there is an escape clause for national health emergencies in the World Trade Organization's intellectual property agreement, the very clause that the US and Canada almost invoked during the Amerithrax (anthrax) attacks of 2001 for the drug Cipro (a threat friend-of-Big-Pharma Senator Joe Lieberman's staffer Chuck Ludlum called a "mafioso" maneuver).

"Brazil is concerned about doing a good job of treating those Brazilians who need it, with the proper medication, and with updated treatment measures. It is a matter of public interest," said Health Minister Humberto Costa.

The number of people taking anti-AIDS drugs in Brazil is increasing rapidly, from 36,000 in 1997 to 170,000 in 2004. The country provides 15 types of anti-AIDS drugs to its citizens for free, adding Abbott's Kaletra to the list in 2002 for patients who had developed resistance to other treatments.

Abbott's response is that Brazil is putting its desire to cut health care costs ahead of patients' needs.

Yes. That's what they're saying. Read it again. Abbott's response is that Brazil is putting its desire to cut health care costs ahead of patients' needs.

Rationale? Those high drug costs are subsidizing research and development on the latest treatments. Like anti-impotence drugs? Abbott made almost $900 million in sales on Kaletra last year. That's more than triple Brazil's entire National STD/AIDS Program to provide free drugs.

So good for you, Lula.