E-DRUG: Answer of Thai Minister of Health to EU Commissioner Mandelson
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Please find below the reply of the Thai Minister of health to the Commissioner Mandeslon's letter on compulsory licenses, faithfully transcribed.
Alexandra
Alexandra Heumber
EU Advocacy Liaison Officer
Médecins Sans Frontières
Access to Essential Medicines Campaign
Rue Dupré, 94. 1090 Brussels
++32 (0) 2 474 75 09 (Dir off)
++ 32 (0) 479 514 900 (Mob)
++ 32 (0) 2 474 75 75 (Fax)
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Ministry of Public Health
Tiwanond Road,
Nonthaburi 11000, Thailand
Tel: +66 2590 2040
Fax: +66 2591 8496
August B.E. 2550 (2007)
The Rt. Hon. Peter Mandelson P.C.
Member of the European Commission
B-1049 Brussels
Belgium
Dear Mr. Commissioner,
Please kindly refer to the letter from the Thai Commerce Minister, no. 0703/2978 dated 8th August 2007 replying to your letter dated 10th July 2007 concerning the Compulsory Licensing (CL) of pharmaceutical patents in Thailand. The Thai Ministry of Public Health (MoPH) would like to provide you with the additional information on the concerns raised in your letter.
In implementing the CL, we intended to pay a royalty fee of 0.5 per cent to the patent holders as described in our CL announcements. This fee was set up based on the past experiences in other developing countries as well as on the volume of medicines used. This figure is negotiable, but so far no company has paid any interest in negotiating on it.
To allow better compensation and constructive engagement with the patent holders, the Thai MoPH has proposed to the patent holders that if the price of any patented product under CL, is within 5 per cent above the lowest-priced generic, the MOPH will purchase that patented medicine from the patent holder. This 5 per cent credit points is equivalent to paying a royalty fee of 5 per cent which is 10 times more than the announced royalty fee of 0.5 per cent. If this criterion is met, the MoPH will not implement the CL. This new criteria is meant to show our gratitude to the patent holders when they show their commitment to serve the public at large by lowering the price of their patented products.
I would like to reiterate to you that this 5 per cent credit points is applied only to those three medicines procured under the CL, to be used by those patients under the National Health Insurance Schemes. It will not be applied to the three medicines which are sold in the private out of pocket market. It will also not be applied to other patented medicines which are not under CL, and it is not one of the criteria used in deciding to apply CL on any drug.
Regarding you other concerns, I would also like to request for you kind advice and information on the following points:
1. As exemplified in our White Paper, there are several examples of CL implementation by European countries. I would be interested to learn, as implied in your letter, examples of the abandonment of patents by any drug company and the isolation of any European Country that have implemented the CL on some medicines, from the global biotechnology investment community.
2. The normal royalty fees that the EU member countries used to give to the patent holders, when they applied the CL on medicines, especially examples of those which are given above our proposed 5 per cent credit points.
3. The official evidences on the point raised in your letter that we intend to implement the CL wherever the price of patented medicine exceed certain level.
Your kind responses to the 3 points mentioned above would be highly appreciated. They will support us to improve our actions on increasing access to essential medicines in the future.
In addition, as the European Parliament has just passed a resolution related to this issue, I also take the liberty to copy this letter as well as your letter to the President of the European Parliament for his information and proper actions.
Please accept, Your Excellency, the assurances of my highest esteem and consideration.
Sincerely yours,
(Dr. Mongkol Na Songkhla)
Minister of Public Health
c.c.:
1) President of the European Parliament
2) Mr. Nitya Pibulsonggram, Minister of Foreign Affairs of Thailand;
3) Mr. Krirk-krai Jirapaet, Minister of Commerce of Thailand;
Attachment: White Paper on the Government Use of Patent in Thailand