Thailand threatens to produce more copycat drugs

By Nopporn Wong-Anan

BANGKOK (Reuters) - Thailand, which has upset big drug companies by issuing patent-overriding licenses for generic versions of heart and HIV/AIDS pills, said on Monday it would issue more unless the firms cut prices.

Health Minister Mongkol na Songkhla told Reuters a ministry panel was studying drugs Thailand needed and could make or buy copies of while haggling for "appropriate" prices of patented versions.

"If they give us a certain amount of discount, we won't do it," Mongkol said, referring to compulsory licenses governments are allowed to issue to domestic firms to produce generic versions of drugs in emergencies.

"We don't call this a threat, but a negotiation for the country's benefit," Mongkol said in a telephone interview.

Last week, the Health Ministry issued compulsory licenses for the heart disease drug Plavix, made by Bristol-Myers Squibb and Sanofi-Aventis and Abbott Laboratories' Kaletra to treat

HIV/AIDS.

The licenses, which Thai health officials said would save the country up to 800 million baht ($24 million) a year, drew praise from AIDS activists, but flak from Washington and the drug industry, which are urging the ministry to rescind them.

Mongkol said the ministry would enforce the licenses only if it failed to get the two patented drugs from the firms at prices it was prepared to pay.