In an unprecedented challenge to global drug companies, Thailand’s Ministry of Public Health allowed a generic version of patented drugs to be produced, thereby infringing the patent protection of the proprietary drugs.

The rules opens up possibilities for production and sales of generic version of patented drugs in a "national emergency or other circumstances of extreme urgency" while the patent protection is still in force. The exemption has its precedence as a tool to fight against AIDS but not something that should be extended to other health conditions. Recently, several countries like Brazil, South Africa and Thailand have approved production or importation of cheaper generic AIDS drugs on humanitarian grounds with WTO’s approval.
 
But for non-AIDS drugs, this has been unprecedented. In response, international pharmaceutical and bio-science companies have frozen investments in Thailand and sounded the alarm bell of taking this route. The move would be brought to the World Trade Organisation's Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement, which requires member countries to recognise international patents on medicine.

But the Thai Public Health Minister, Mongkol Na Songkla, justified the decision on the need to create greater access to life-saving drugs for all Thais. For instance, under the Government's plan, Plavix, which usually sells at 70 baht ($2.60) per tablet, will be available at 6 baht per tablet.

He also issued a second compulsory licence for second-line AIDS drug Kaletra, which is expected to cost half the current price. Kaletra is manufactured by Abbott Laboratories, and Plavix is made by sanofi-aventis and BMS.

*****