Drug firms abandon fight to stop cut-price medicines

swissinfo.ch

Pharmaceutical firms have dropped their legal challenge to prevent South Africa from importing cheap copies of patented Aids drugs. The firms denied they had bowed to pressure, saying they had cut a deal with the South African government.

The 39 drugs’ firms, which include Switzerland’s Novartis and Roche, decided on Thursday to scrap their challenge to a South African law, which allows the country to import cut-price generic drugs.

At the hearing in the high court in Pretoria, they also said they would meet the South African government’s legal costs.

The case, brought by the Pharmaceutical Manufacturers’ Association of South Africa (PMA) and the 39 drug firms, was seen as a landmark battle in efforts to secure medication for the millions of people in Africa infected with HIV.

The pharmaceutical industry denied that the decision to withdraw the case was a result of public pressure.

Thomas Cueni, Secretary General of the Interpharma, the association of Swiss pharmaceutical companies, admitted to swissinfo that all 39 firms had agreed to withdraw the lawsuit “despite the fact that the medicines act will not be changed”.

However, he added that “the South African health ministry will invite a working party from the industry to discuss the implementation of this law”.

He said South Africa had also made a commitment to honour international agreements relating to intellectual property rights.

The South African health minister, Manto Tshabalala-Msimang, described the drug companies’ withdrawal as “a victory not just for South Africa, but for Africa and the whole developing world”.

“I would like to thank the whole world for supporting us,” she added.

Earlier this week, a group of 28 development and aid organisations in Switzerland, including Swissaid and Terre des Hommes, called on Roche and Novartis to withdraw from the case.

They said it was “shocking that [the firms] should give higher priority to preserving their profit margins and patents than the health of millions of people”.

The drug companies had argued that the law infringes patent rights and discriminates against the industry, endangering profits and research.

But the South African government maintained that it cannot afford to pay for patented drugs to fight the Aids epidemic, which has affected about 10 per cent of the country’s population of 45 million.

Commenting on the outcome, the British charity, Oxfam, described the drug firms’ withdrawal was “a comprehensive climbdown”. “The case should never have happened… It is a great victory for the people of South Africa and for the global campaign to make drugs more affordable.”

swissinfo with agencies