Drug companies withdraw case against government

Pharmaceutical giants on Thursday dropped a lawsuit against the South African government over a law that could provide cheaper drugs to millions of Africans. The withdrawal ended an international battle that deeply embarrassed the companies, news reports said. The lawsuit revolving around patent rights and profit was seen by human rights groups and AIDS activists as a landmark battle in the effort to secure medication for the 26 million people in Africa infected with HIV. The law could allow South Africa to import or make cheap generic versions of patented drugs.

Health Minister Manto Tshabalala-Msimang said South Africa had not agreed to any deals regarding the law, which was passed but not implemented. The drug companies also agreed to pay all the costs of the case, but the government also did not consider that the law gave it blanket authority to import or produce generic versions of the antiretroviral drugs, Tshabalala-Msimang said. The lawsuit opened the drug companies to broad criticism since it began six weeks ago. Many have responded by drastically cutting prices on their own. But even with the severe price reductions offered by some companies, the vast majority of people suffering in Africa could not afford the medications, according to reports.

Mirryena Deeb, chief executive of the country’s Pharmaceutical Manufacturers Association (PMA), was quoted as saying that the suit was dropped as a “result of a negotiating process”. She said the government had agreed to consult the companies when they drafted the regulations to implement the law. The World Health Organization (WHO) said the agreement would enable the South African government and the drug companies to focus on implementing the law, which had been stalled by the court case. The 39 pharmaceutical companies that brought the suit argued that a 1997 South African law regulating medicines was too broad and unfairly targeted drug manufacturers. The government, AIDS activists and human rights groups have said the drug companies are trying to wring profits out of a public health nightmare that threatens to devastate South Africa and dozens of other impoverished countries.