Developing states attack EU on generic drug seizure

Reuters
February 26, 2009
By Jonathan Lynn

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GENEVA - Developing countries accused the European Union on Monday of seeking to use tough intellectual property laws to seize generic drugs, putting lives at risk in emerging nations where the cheaper medicines are often destined.

At a meeting of the World Trade Organisation, Brazil and India criticised the European Union over an Indian generic drug to treat high blood pressure that was in seized late last year while transit in the Netherlands for Brazil.

Like many developing countries, Brazil argues that it can withhold intellectual property rights for a drug if there is an overriding public interest. High blood pressure is a leading cause of death in the South American country.

Brazil's WTO ambassador Roberto Azevedo told the WTO's General Council the case reflected a trend by industrialised countries to try and circumvent global trade rules by pushing tough intellectual property standards in other bodies, such as the World Customs Organisation and World Health Organisation.

The case touches on one of the most sensitive issues between rich and poor countries -- access to affordable medicine -- and has been cited by developing countries as an example of rising protectionism in the economic crisis.

"The decision to impede the transit of a cargo of generic medicines -- which was not headed for the Dutch market -- is unacceptable and sets a dangerous precedent," Brazil's WTO ambassador, Roberto Azevedo, told the WTO's General Council.

"Worse still, there are indications that this is not an isolated case," he said, according to a text of his remarks.

DRUGS SENT BACK

EU ambassador Eckart Guth criticised the "highly emotional debate" and warned fellow WTO members against jumping to wrong conclusions or blowing the case out of proportion.

"Let me make it very clear that the EU has absolutely no intention to hamper any legitimate trade in generic medicines or to create legal barriers to prevent movement of drugs to developing countries," he told the WTO council.

Azevedo argued trade in generic medicines was completely legal under WTO rules and won backing from India and speakers from 17 other developing countries, including South Africa, Indonesia, China, Pakistan and Israel.

Dutch authorities seized the consignment of 500 kilos of a generic version of the arterial hypertension drug losartan at the request of a company holding Dutch patent rights on Dec. 4. The drug is not patent-protected in Brazil or India.

Guth said the shipment, worth 55,000 euros ($70,730) was detained under WTO rules allowing customs to temporarily hold goods suspected of infringing intellectual property rights.

After 36 days they were returned to the Indian owner, and flown back to India, never reaching Brazil.

The generic version of the drug is manufactured in India by Dr. Reddy's Laboratories. Losartan is the generic name for the drug Cozaar developed jointly by Merck & Co and Dupont Co. Trade sources said Merck is the patent holder in the Netherlands under the name Merck Sharp & Dohme.

The WTO General Council also approved a new chairman for the year, Chilean ambassador Mario Matus, 52. Matus previous chaired the WTO's dispute settlement body, which handles trade disputes worth billions of dollars.

Matus was replaced as dispute settlement body chairman -- a position which often leads to the council chairmanship -- by Canadian ambassador John Gero.

NOTICE: In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving this information for research and educational purposes.

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