Search the Internet          Tips  Sites: Finance, Investment

Drug firms drop South African AIDS case

Top pharmaceutical firms on Thursday dropped their court bid to stop South Africa importing cheap copies of their AIDS drugs in what could be a breakthrough in getting treatment to millions of impoverished sufferers.

"With the consent of all parties, I simply ask to notify (that) the application is withdrawn," Fanie Cilliers, lawyer for the 39 drug firms, told a packed court, including Health Minister Manto Tshabalala-Msimang and dozens of AIDS activists, many wearing t-shirts proclaiming themselves "HIV positive".

The case was brought by the Pharmaceutical Manufacturers' Association of South Africa (PMA) and 39 international drug makers, who had sought to prevent implementation of a new law that would allow the import of cheap copies of patented drugs.

It turned into a key test of the ability of the world's poorest countries to secure affordable and sustainable supplies of medicines in the face of an epidemic, which affects more than 25 million people in Africa alone.

South Africa, with an estimated 4.7 million sufferers, has more people living with HIV or AIDS than any other country in the world.

"It's the result of a settlement. We have basically laid down a partnership to allow us to move forward," PMA chief executive Mirryena Deeb told reporters at the court.

She said the settlement ensured that South Africa would meet its international trade obligations, including those set under the World Trade Organisation.

Deeb insisted that the settlement was not a result of public pressure, adding "not at all. So we're happy with it".

Tshabala-Msimang, who beamed as the court erupted in celebration, told reporters: "This is a victory not just for South Africa, but for Africa and the whole developing world.

"I would like to say thank you to the whole world for supporting us," she said.

Kevin Watkins, of the British aid group Oxfam said the pharmaceutical industry had been forced to withdraw to limit the public relations disaster caused by the application to force South Africa to pay first-world prices for drugs.

"It's a comprehensive climbdown. The drug industry is throwing the towel into the middle of the ring.

"This case should never have happened. We have lost three years in the fight against AIDS, but it is a great victory for the people of South Africa and for the global campaign to make drugs more affordable," he said.

Word of a pharmaceutical withdrawal began to spread on Tuesday, the eve of the resumption of their court challenge to a new South African law on medical patents.

Representatives of the 39 international companies acting with the local PMA met through the night on Tuesday and sought a postponement of the case on Wednesday before announcing the unconditional withdrawal of the case on Thursday.

The South African Communist Party, part of a ruling alliance led by President Thabo Mbeki's African National Congress, held what it called a victory rally close to the Pretoria court.

"The SACP regards the withdrawal of many of these companies as a reminder that the bosses and their system of capitalism are not invincible," the party said in a statement.

DEMONSTRATIONS OUTSIDE COURT

Demonstrators demanding a better deal for Africa's millions of HIV and AIDS sufferers have paraded outside the court each time it has met to consider the case.

"We need to win this case otherwise many of us will die. Our hope lies in winning this case. We must win it," said 29-year-old Nonthantla Maseko.

Maseko was among hundreds of protesters demonstrating outside the Pretoria court on Wednesday.

Substitute triple-therapy treatment drugs imported from India cost as little as $350 a year, compared to more than $1,200 currently charged by Western drug firms.

Pressure groups have blasted major drug firms such as GlaxoSmithKline, the world's largest supplier of HIV-AIDS medicines, and Merck & Co.

Drug firms argued that the proposed legislation would give unfettered power to South Africa's health minister to import or manufacture generic drugs, overriding their cherished patent rights which, they argue, fund future medical research.

Tell us what you think of this report