U.S. DoS Cable: REGIONAL ECONOMIC POLICY AND SUMMIT REVIEW


R 151858Z JUL05 – July 15, 2005
FM SECSTATE WASHDC
TO WESTERN HEMISPHERIC AFFAIRS DIPL POSTS
SUBJECT: OFFICIAL INFORMAL: REGIONAL ECONOMIC POLICY AND SUMMIT REVIEW – JUL 4-8, 2005

(U) This is one of a series of informal, uncleared newsletters assembled by WHA/EPSC for use by embassy economic sections.  Items are drawn primarily from the Assistant Secretary Daily Activity Reports (ASDAR) prepared by WHA officers during the period July 4- July 8, 2005.

[excised]

17.  (SBU) Brazil: Rejection of Abbott Offer On Kaletra.  Shortly before the afternoon meeting on July 6, the Ministry of Health rejected Abbott’s price cut proposal for its Kaletra AIDS drug.  Abbott will contact USTR after concluding internal discussions.  While the Abbott offer is still not public, press reports state the proposal had a six year term and would have had the GOB paying the same dollar amount for the drug as it expended last year in each of the next six years no matter how many patients needed treatment.  The net result would be declining unit costs as the HIV/AIDS infected population increased, but projections are that the supposed Abbott offer would only approach the 68 cents/unit price the Brazilians want to pay in the sixth year of the proposed pact.

18.  (C) Brazil: MoH and Abbott Reach Agreement, No Compulsory Licensing.  On July 8 post reported that President Lula approved an agreement reached by the Ministry of Health and Abbott on pricing for the Kaletra HIV/AIDS drug.  The GoB will not issue a compulsory licensing order.  A joint settlement was released later that day.
RICE

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