SUWIT DEFENDS BREAKING PATENTS, MINISTER MAY TAKE CASE TO

UNCLAS SECTION 01 OF 02 BANGKOK 001717 SIPDIS SENSITIVE SIPDIS STATE PASS USTR FOR B. WEISEL, C. WILSON STATE PASS USPTO HHS/OHGA FOR AMAR BHAT USDOC FOR JKELLY E.O. 12958:N/A TAGS: ECON ETRD KIPR TH SUBJECT: SUWIT DEFENDS BREAKING PATENTS, MINISTER MAY TAKE CASE TO U.S. REF: BANGKOK 1269 ¶1. (SBU) Summary: The RTG continues consideration of future compulsory licenses on patented drugs, though none appear to be on the immediate horizon. The Ministry of Public Health's leading proponent of compulsory licenses, Dr. Suwit Wibulpolprasert, defended their use but stated the Ministry would prefer to negotiate lower prices with pharmaceutical companies and avoid a confrontation. The Minister of Public Health is considering a U.S. visit in late April to explain the RTG's policy. End summary. ¶2. (SBU) On March 22, Econ section chief met with Dr. Suwit Wibulpolprasert, Senior Health Advisor to the Minister of Public Health and a leading proponent of the use of compulsory licenses on patented pharmaceutical products in Thailand. Dr. Suwit struck a conciliatory tone, emphasizing the RTG's willingness to continue negotiations with pharmaceutical companies, while defending the practice and the necessity of Thailand's recent licensing of three drugs (reftel). ¶3. (SBU) Suwit made clear that compulsory licenses were not the Ministry's preferred method of improving access to medicines ("It creates so much work for us," he said). However, the process for evaluating compulsory licenses continues apace. The process is led by an interagency committee headed by the semi-public National Health Security Office (NHSO) which evaluates drugs for compulsory licenses and makes recommendations to the Ministry for approval. Suwit said they had not received any new proposals for further compulsory licenses, but expected that the NHSO could make a recommendation in the next few weeks. ¶4. (SBU) Suwit explained that the Ministry only considered compulsory licenses on drugs listed on the National List of Essential Drugs (NLED),though exceptions could be made for epidemics, other emergencies, or "to solve important public health problems." Of the 900 odd drugs on the NLED, only approximately 200 were patented, and of those Dr. Suwit considered only 10-20 worthy of consideration for a compulsory license. Embassy had earlier obtained a list of 14 drugs, including the three already subject to compulsory licenses, that were considered potential targets. ¶5. (SBU) Suwit claimed that previous attempts at negotiating lower prices with pharmaceutical companies had been unsuccessful (companies deny any such negotiations took place),and therefore compulsory licenses were being pursued on a dual track. The NHSO would begin negotiations with a company while simultaneously preparing for a compulsory license. If agreement could be reached in time, the compulsory license would not be exercised. Suwit said that the Ministry had moved quickly on procuring generic versions of Merck's antiretroviral efavirenz as supplies were low. However, the Ministry still maintains ample supplies of Abbott's Kaletra and Sanofi-Aventis' Plavix, both subjects of compulsory licenses in January, and is taking a more leisurely approach. He noted, however, that neither company appeared interested in negotiations. ¶6. (SBU) Suwit said that discussions were ongoing with Swiss-based Novartis, which had apparently agreed to provide nine free boxes of one of their drugs for every box sold in Thailand, essentially a 90 percent reduction in price. Suwit did not specify the drug, but Novartis' cancer drug Gleevec earlier had been mentioned as a target. Suwit said that although an Indian generic was available for 15 times less the originator's price, a compulsory license could still be avoided if discussions were fruitful. Coming to America? -------------- ¶7. (SBU) Suwit said the Minister of Public Health, Dr. Mongkol na Songhkla, was considering a trip to the U.S. to explain the compulsory license decision and had blocked out April 25-27 as possible dates. Suwit said the Minister wanted an opportunity to make his case directly to USG decision makers, and was also open to consider different views on the issue. Suwit said MFA originally proposed the trip, concerned that the USG would soon place Thailand on the Special 301 Priority Watch List, potentially threatening Thailand's trade benefits under the Generalized System of Preferences. MFA Americas Director Nongnuth said the idea was still under consideration, but MFA wants to ensure that Mongkol's message is positive, promising cooperation and consultation rather than making the situation worse. Embassy recommended a visit. ¶8. (SBU) Comment: Dr. Suwit came across as supremely pragmatic: "I BANGKOK 00001717 002 OF 002 know they (pharma companies) are businesses. I come from a business family. We can negotiate." But he also stated that his duty was to "take care" of the Thai people. He seemed ready for an approach that is less confrontational and looks at drug affordability and development as universal problems. We believe that the Health Minister's visit would be a good opportunity for an individual who has spent most of his career as a rural doctor to gain a broader perspective of the issues involved. BOYCE