Chamber Urges Brazil to Abandon Its Drug Ultimatum

WASHINGTON, D.C. – The United States Chamber of Commerce urged the Brazilian government to abandon the ultimatum it issued to a U.S. pharmaceutical company to halve its price on a key HIV/AIDS treatment or lose its intellectual property rights protections.

"Brazil's threat to strip patent rights from a U.S. company should concern all investors and every business around the world because of the precedent it sets for the treatment of intellectual property," said Thomas Donohue, Chamber President and CEO. "Intellectual property is one of the most valuable assets in any industry and its protection should be paramount."

The Brazilian government recently issued a statement threatening to break Abbott Laboratories' patent on the HIV/AIDS drug Kaletra unless Abbott agreed to halve its price by July 7. This threat is a substantial escalation in the HIV/AIDS debate between the Brazilian government and the research-based pharmaceutical industry, according to the Chamber. Under its ultimatum, Brazil would issue a compulsory license to Brazilian government laboratories, allowing them to market copies of Abbott's drug.

"While we share the Brazilian government's concern for the well being of its citizens suffering from this terrible disease, the way to deal with this situation is through dialogue and partnership, not through threats," said Donohue. "U.S. companies have always been willing to explore different possibilities with the government of Brazil to provide support to the national AIDS program."

Brazilian leaders must negotiate the issues in this case, without resorting to unilateral actions which could spark a wider rift between the two nations, according to the Chamber.

The U.S. Chamber of Commerce is the world's largest business federation representing more than three million businesses and organizations of every size, sector and region.

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