December 19, 2000
The Head of Patents Dear Sir,
CIPLA seeks to sell products for the treatment of HIV and related illnesses,
including those containing nevirapine. As you know, the high prices for HIV/AIDS
medicines have made it impossible for millions of persons in developing
countries to obtain access to medicines, contributing to widespread suffering
and death. CIPLA seeks to provide a competitive product, with the expectation
that competition will drive prices down, benefitting patients and saving lives.
To this end, CIPLA requests a timely response to the following:
Depending upon the nature of Boehringer Ingelheim's property rights in the
each country, CIPLA is willing to pay royalties as high as 5 percent of net
sales, for example, in countries where Boehringer Ingelheim has patents similar
to those granted in the United States or the UK. (In countries where Boehringer
Ingelheim has substantially lesser intellectual property claims, for example, in
countries where Boehringer Ingelheim did not file for a "use" patent for
nevirapine, CIPLA would negotiate an appropriate royalty that reflects the value
of the IPR in the product.)
According to a February 2000 submission to the United States Trade
Representative (USTR) by the US trade group PhRMA, five percent is the
"approximate average pharmaceutical royalty rate," and given the human tragedy
unfolding the developing countries over the lack of access to medicines for
HIV/AIDS and allied ailments, the "average" royalty is surely adequate for the
world's poor.
Given the urgency of the public health crisis, we ask for a response to this
request by January 25, 2000.
Yours sincerely, Amar Lulla Copy to: The Cheif Executive Officer
Boehringer Ingelheim Ltd.
Ellesfield Avenue,
Bracknell
Berks RG12 BYS
United Kingdom
For Cipla Limited
Director