A group of 39 international pharmaceutical companies is expected to drop its case against the South African government over plans to import cheap, generic versions of anti-AIDS drugs. The case has been adjourned until tomorrow to allow talks on a settlement. A decision to settle the case will be seen as a victory for poorer countries affected by the high cost of medicines. The companies are suing the government in a landmark case that centres on patent rights and the cost of medicines in poorer countries.
The companies had challenged a South African law which would allow the government to override the companies patents and import cheap versions of their branded AIDS drugs. Big pharmaceutical companies argued that the 1997 South African law infringed their intellectual property rights and jeopardised future research and development. However, human rights groups and AIDS activists say that the companies had put profits before saving the lives of some of the 25 million Africans with HIV and AIDS. The companies include some well-known multinationals GlaxosmithKline, Roche and Merck.
It is understood that a settlement would mean the drug companies dropping their case if South Africa agreed to abide by international patent laws. The case is seen as a test of the ability of developing countries to secure access to sustainable supplies of generic drugs particularly those to combat AIDS.
