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www.fdanews.com/articles/81366-brazilian-health-ministry-quot-close-quot-to-arv-pricing-deal

BRAZILIAN HEALTH MINISTRY "CLOSE" TO ARV PRICING DEAL

October 4, 2005

According to official news sources, Brazil's health ministry is "close to a deal" with US-based Abbott Laboratories, which could effectively halve the price of supplies of its ARV Kaletra for the country's HIV/AIDS treatment programme, now US$1.17 per dose. Government sources expect a deal will cut the annual cost of the drug -- a front-line therapy in Brazil -- by US$339mn.

However, the prospect of a deal has not been confirmed by Abbott, and it is unclear whether any arrangement would amount to voluntary licensing of the product. Brazil threatened to compulsorily license the product earlier this year, but appeared to back down and concede to a new pricing formula.

Meanwhile, negotiations are reportedly ongoing with US drugmaker Merck on a possible voluntary license for Efavirenz. Brazil's health minister has also commented that the government has "received an offer" from the Clinton Foundation on a "generic" version of Gilead Sciences' Viread, sourced from India. Officials hope to significantly reduce the prices of all 17 drugs used in the treatment programme.