December 19, 2000
Head of Patents Dear Sir,
CIPLA seeks to sell products for the treatment of HIV and related illnesses,
including those containing stavudine and didanosine. 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 Bristol-Myers Suibb's property rights in each
country, CIPLA is willing to pay royalties as high as 5 percent of net sales,
for example, in countries where Bristol-Myers Squibb has patents similar to
those granted in the United States or the UK. (In countries where Bristol-Myers
Squibb has substantially lesser intellectual property claims, for example, in
countries where Bristol-Myers Squibb did not file for a "use" patent for
stavudine or didanosine, 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 in 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 Chief Executive Officer
Bristol-Myers Squibb Pharmaceuticals
141-149 Staines
Road
Hounslow
Middlesex TW3 3JB
United Kingdom
For Cipla Limited
Director