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 fluconazole. 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 Pfizer'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 Pfizer has patents similar to those granted in the
United States or the UK. (In countries where Pfizer has substantially lesser
intellectual property claims, for example, in countries where Pfizer did not
file for a "use" patent for fluconazole, 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
Pfizer Limited
IPC 748, Sandwich
Kent CT13
9NJ
United Kingdom
For Cipla Limited
Director