It worked! Abbot Laboratories became the first pharmaceutical company to back down after the stand-off with Thailand over generic medicine. Thailand’s government must be feeling pretty proud of themselves; in the space of a week they’ve taken down Google, the world’s internet giant, and now Abbot.

Abbot’s new offer, according to the Bangkok Post this morning, is made for the HIV/Aids drug Aluvia on the express condition that Thailand does not impose compulsory licensing. However, always ones to look a gift horse in the mouth, the offer may not be low enough for Thailand. The offer stands at $1,000 per person, per year (down 40% no the last offer).

Vichai Chokewiwat, chairman of the Public Health Ministry’s panel on compulsory licensing, said that the offer from Matrix Laboratories of a generic drug priced at $695 per person, per year looks more tempting.

‘’If we buy the drug from India at US$695 per person per year, next time, we might get the drug at a lower price, probably as low as US$500. If we buy it from the US firm at US$1,000 now, we might have to continue buying it at US$1,000 forever.’’ (Bangkok Post)

How low does the offer need to be? Will the Ministry not be satisfied until it is given everything for free? This is the compromise, the negotiation that Clinton said he wanted. The Health Ministry is out for all it can get here.

Sanofi-Aventis has also backed downed, making the offer to slash the price of its heart disease drug Plavix by one third, from 90 to 27 baht per tablet.

It should be noted that it has taken many years and many millions of dollars to develop Aluvia, and while some African countries are charged $500 a year for an earlier version of the drug, is Thailand really a charity case in that same vein? American patients pay $7,500 a year. Abbot, along with Sanofi-Aventis, is trying to solve the problem here. If Thailand stands firm then it may have serious global consequences for the future of pharmaceutical research.

Thailand’s Aids sufferers may benefit in the short term, but in the long run, with less money for research, pharmaceutical giants may be reluctant to offer Thailand the newest drugs when the country needs them, and some drugs may never even be developed. Is the issue even about pricing any more? It seems not; this is a power trip for the Thai government, riding the wave after Google shocked the world by buckling under pressure from Sitthichai. A compromise is needed, and one is on the table. Aids is a problem in Thailand, but it is a problem with many causes. How ironic that the thriving sex industry is partially funded by American tourism. It’s like supply and demand on the darkest of levels.

Thailand needs to think long and hard about what to do next.

Techno’ tags: Bangkok, Thailand, Generic medicine, Aluvia, Abbot