Brazil and Abbott
Laboratories reach agreement on anti-HIV drug

Brazil decided not to break the patent on a key anti-HIV drug after Abbott Laboratories agreed to significantly reduce the drug's price over the next six years, according to the nation's health ministry. The Brazilian government and Abbott reached an agreement late Friday after 10 days of negotiations.

The health ministry had warned it would start producing a cheaper generic version of the antiretroviral drug Kaletra unless the U.S. manufacturer sharply cut its price for the Brazilian market by midnight Thursday. As part of the agreement, Brazil also will have access to Kaletra's new formula, which is expected to be released in two years, the health ministry said in a statement. In addition, Abbott agreed to transfer technology to Brazil so it can begin producing a generic version of the drug after 2015.

The health ministry said Abbott's price reduction will allow Brazil to save $18 million next year and $259 million in six years. The agreement doesn't specify a per-capsule price, which will be dependent on the number of patients taking the medication. The Brazilian government said it will be allowed to expand the number of patients treated with Kaletra without an increase in the drug's annual cost.

In a statement, Abbott said the agreement accomplishes its "objectives of helping Brazil expand patient access to Kaletra while preserving the company's intellectual property rights, which Abbott was not willing to negotiate."

Brazil had justified the move to break the patent by declaring a public health crisis for its anti-AIDS program, which provides free medicines for anyone who needs them. Brazil has repeatedly forced antiretroviral drug manufacturers to reduce prices by threatening to break their patents but has never taken that step. It is also in similar negotiations with two other makers of anti-HIV drugs, Merck and Gilead Sciences. (AP)