R 071454Z JUL 05 – JULY 7, 2005
FM SECSTATE WASHDC
TO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
SUBJECT: OFFICIAL INFORMAL REGIONAL ECONOMIC POLICY AND SUMMIT REVIEW
Classified By: WHA/EPSC: LJGUMBINER FOR REASON 1.4(E) [foreign relations or foreign activities of the U.S. including confidential sources]
[excised until paragraph 23]
23. (SBU) Brazil: Generic Production of U.S. HIV/AIDS Drugs Possible. On June 24, Brazil notified U.S.-based Abbott Laboratories that it had 10 days to lower the price for its HIV/AIDS drug, Kaletra, or be faced with a compulsory licensing order. Interestingly, Brazil’s argument for potential compulsory licensing is based on “public interest” (rather than “national emergency”) and appears to have been carefully formulated to comply with its TRIPs obligations. Brazil has threatened compulsory licensing several times in recent years to obtain lower prices, but this latest dispute with Abbott is the most serious standoff to date. Brazil continues to negotiate with Merck and Gilead for lower prices or voluntary licensing on their HIV/AIDS drugs. [excised]