Brazil to buy indian generic at 0.45; Merck offers 1.10 vs 0.65 Thailand pays

Friday, 4 May 2007, 20:59 GMT 21:59 UK | Brazil to break Aids drug patent

Brazil's president has authorised the country to bypass the patent on an Aids drug manufactured by Merck, a US pharmaceutical giant.

The country will import a cheaper, generic Indian-made version of the patented Efavirenz drug.

The decision came after talks between Brazil and the US company broke down.

Merck had offered Brazil a 30% discount on the cost of the drugs but the country wanted to pay the same price as Thailand, which gets a larger discount.

Small royalty

Merck offered Brazil almost a third off the cost - pricing the pills at $1.10 (£0.55) instead of $1.59.

But Brazil wanted its discount pegged at same level as Thailand, which pays just $0.65 per pill.

Now, though, it will source Indian-made versions of Efavirenz for just $0.45 each. ...