Multinationals, Government Talks on Brazil ARVs Licensing

The Brazilian government continues to negotiate with Merck & Co. over the voluntary licensing of its antiretroviral therapy Efavirenz. The US drug major has completed a technical assessment of a state-owned drugmaker, Fiocruz, which would begin local production of the drug if government plans succeed.

Brazilian authorities first threatened to break patents on three key HIV/AIDS drugs at the start of the month, and the local representatives of Merck, Gilead Sciences and Abbott Laboratories have been in talks over royalties and voluntary licensing since that time. The three drugs, which in addition to Efavirenz include Gilead's Tenofovir and Abbott's Lopinavir/Ritonavir, account for 70% of the cost of Brazil's HIV/AIDS treatment programme. The products are also the last of the scheme's 15 drugs not already manufactured by the government or domestic firms.

Health Ministry officials are expected to shortly open negotiations with Gilead Sciences, and are due to meet Abbott next week. Meanwhile, Merck has described the latest discussions as marked by "a mutual show of interest," although the company's country director has commented that it would be better if the government refrained from threats to break patents in the first place. The Health Ministry's reaction to Merck's technical assessment is expected next week, and officials hope to begin government production of Efavirenz within one year.