FDAnews
www.fdanews.com/articles/81579-brazil-confirms-kaletra-pricing-deal-with-abbott

BRAZIL CONFIRMS KALETRA PRICING DEAL WITH ABBOTT

October 12, 2005

Brazil has confirmed its pricing deal on US-based Abbott Laboratories' ARV Kaletra, according to the Reuters news agency. Last week, it was announced that the price per dose would fall more than 46% from US$1.17 to US$0.63.

The apparent deal will end many months of threats to compulsorily license the drug, and possible retaliatory downscaling in Brazil by drug multinationals. However, it remains to be seen whether the Brazilian government will adopt a similarly aggressive line with other multinational ARV producers. Leading US-based producers had already threatened to downscale in Brazil if a mandatory technology transfer were ordered.

Meanwhile, it is unclear what state the result will leave Brazil's ongoing battle with US negotiators over cotton subsidies at the WTO. Media sources speculate that several other industries with a presence in Brazil could now be vulnerable to retaliatory action by Brazil over the allegedly illegal subsidies to US farmers.