UAE HEALTH MINISTRY REJECTS THE MANDATORY

C O N F I D E N T I A L ABU DHABI 000144 SIPDIS STATE FOR NEA/ARP, NEA/PPR AND EB/TPP/MTA/IPC STATE PASS USTR - KALVAREZ AND JBUNTIN USDOC FOR USPTO USDOC FOR 4250/DOC/MAC/ONE/GUGLIELMI GENEVA PASS USTR E.O. 12958: DECL: 1/11/2007 TAGS: PREL KIPR ETRD TC SUBJECT: UAE HEALTH MINISTRY REJECTS THE MANDATORY REGISTRATION OF PHARMACEUTICALS BY THE GCC ¶1. (U) Classified by Acting DCM Thomas E. Williams for reasons 1.5 (b) and (d). ¶2. (C) Summary and comment: UAE Ministry of Health Director of Drug Control Department Dr. Easa Al-Mansouri provided Econoff a read-out on January 11 of the GCC Health Ministers Conference last week in Abu Dhabi. The ministers discussed a variety of issues, including the impact of international trade agreements on the development of a regional pharmaceutical industry. Al-Mansouri assured Econoff that the UAE, along with the smaller Gulf countries, is standing firm against Saudi pressure to mandate registration of pharmaceuticals through the GCC Patent Office in Riyadh. The UAEG is well aware that caving on this issue would probably cause it to contravene its WTO obligations. End summary and comment. ¶3. (C) The registration of drugs in the region was the most controversial item on the conference agenda, according to Al-Mansouri. The Saudis apparently are eager to make compulsory the registration of all pharmaceuticals through the GCC Patent Office in Riyadh. Al-Mansouri noted that the other GCC Ministers refused Riyadh's request because of differences between Saudi and the rest-of-Gulf levels of IPR protection. Al-Mansouri admitted that companies would benefit by registering a product one time for six countries, but noted that "no American company would be so stupid" to expect that UAE levels of protection, for example, would extend to Saudi Arabia through the GCC registration mechanism. ¶4. (C) The ministers also debated the unification of drug prices throughout the GCC. According to Al-Mansouri, most local manufacturers of generics are permitted to charge consumers 70-80 percent of the market price of the innovative product. Prices of pharmaceuticals produced in Saudi Arabia, however, are much higher. Currently, the GCC registers only Arab generics -- locally manufactured products -- but will begin registration of innovative products this year. "This is the plan," said Al-Mansouri, "but its success depends on Saudi Arabia joining the WTO and getting serious about patent protection for pharmaceuticals." ¶5. (C) As an aside, Al-Mansouri confirmed that a total of four local pharmaceutical manufacturers would be operational in the UAE by the end of 2003 -- Julphar in Ras Al Khaimah, GlobalPharm in Dubai, and one each in Abu Dhabi and Sharjah. Al-Mansouri noted that all factories would produce garden- variety generic antibiotics or repackage imported drugs for the local market. Wahba