BRAZIL AGREES ON KALETRA PRICING DEAL WITH ABBOTT

Brazil's health minister, Saraiva Felipe, has confirmed a new pricing deal with US-based Abbott Laboratories on its ARV Kaletra. The apparent deal -- which is unconfirmed by Abbott -- brings to an end many months of threats to compulsorily license the drug, and possible retaliatory downscaling in Brazil by drug multinationals.

According to official news sources, the deal will save the government some US$339.5mn between 2006 and 2011, when the drug's patent will approach expiry. The price per dose is expected to fall more than 46% from US$1.17 to US$0.63. Abbott's government supply contract had been expected to end in February 2006, but its renewal is expected to give the government a US$3mn "bonus" in additional supplies, effectively lowering the unit price further to US$0.59.

It is hoped that the deal will end the patent threat, which has loomed large since Brazil took the first step toward compulsory licensing in June, declaring Kaletra to be "of public necessity." Meanwhile, it is to be hoped that this face-saving deal will not encourage the authorities to intervene in the cases of other leading ARVs.