[afro-nets] Open letter from HAI Africa and EPN to Abbott's Shareholders

["HAI Africa" <info@haiafrica.org>]

Open letter from HAI Africa and EPN to Abbott's Shareholders
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26 April 2007

The Shareholders
Abbott Laboratories
100 Abbott Park Road
Abbott Park, Illinois 60064-6400 U.S.A.

OPEN LETTER FROM HAI AFRICA AND EPN TO ABBOTT'S SHAREHOLDERS

Dear Shareholders:

We, Health Action International (HAI) Africa[1] and Ecumenical Pharmaceutical Network (EPN)[2] and our partners, take this opportunity to write to you on the eve of your annual shareholders meeting, to express our collective concern and dismay at Abbott Laboratories' recent actions to withdraw the registration of its life-saving AIDS drug Kaletra® (marketed as Aluvia) and six other medications in Thailand.

Several months ago, the Thai government issued a compulsory license to produce generic versions of Kaletra/Aluvia because at $2,200 per patient per year, the price was prohibitively high. The government's action was entirely legal and within the World Trade Organization's rules and intellectual property right law. In retaliation to the Thai government's action, Abbott withdrew its registration of Keletra/Aluvia and the outstanding registration dossiers of six other medicines at the Thai medicines regulatory authority and further threatened not register any of its drugs in Thailand in future.

Abbott's actions will have an enormous impact on access to essential medicines in Thailand and beyond. The Thai people, especially the poor might miss taking their medicines due to unaffordability and unavailability of the withdrawn drugs. This may lead to drug resistance which will have dire consequences worldwide.

Abbott's new formulation of Aluvia, the heat-stable form of Kaletra® developed over a year and a half ago, does not require refrigeration or need to be taken with meals and is therefore ideal for use in low and middle-income countries throughout Africa, Latin America and Asia. While pharmaceutical companies like Abbott have the legitimate right to compete on the international market with their truly innovative products, it is equally and even more legitimate that countries are sovereign to establish policies that can scale up access to these products.

During your meeting, you may hear in about Abbott's recent price decrease for Kaletra/Aluvia for low- and lower-middle income countries. On the surface, this may seem totally altruistic and generous.  The new price, $1000 per patient per year, however, is still double that of the no-profit price to the poorest countries. Considering that many people in the developing world live on less than a dollar a day, this price is still far from being accessible. Considering also that the developing countries drug market is about 3% of world drug market, and that generic manufacture covers about 10% of the world drug market, it is incomprehensible that a pharmaceutical company of Abbott's stature would carry out actions that limit access even further when it does not touch their bottom line.

Your company makes incredible profits.  Indeed Abbott made a heart-stopping $1.1 billion on sales of Kaletra®, is a thrilling return on your investment. But if actions such as those by Abbott in Thailand are what go into making that profit and you consider the people whose lives are adversely affected by it, it really isn't so thrilling at all.  We believe that by owning shares in a pharmaceutical company, not only do you want a sound investment, but you also want the assurance that the medicines produced are of benefit to all humanity irrespective of social and economic status. This noble aim is being lost on the altar of profit.

We hope this letter gives you, as an Abbott shareholder, second thought. Second thought to put your questions to the floor of the meeting; second thought to demand to that the company reinstate its registration of Kaletra/Aluvia and the six other drug registrations that it withdrew from Thailand; second thought to hold your company accountable to showing corporate and social responsibility to the poor people across the world. Abbott needs to hear from you the shareholders that you put people first!

We, HAI Africa and EPN, stand in solidarity with the advocates of access to essential medicines around the world strongly support the calls for Abbott to reverse their policies in Thailand and illustrate a true commitment to access of life-saving medicines.


Sincerely,

Health Action International Africa
Ecumenical Pharmaceutical Network

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[1] Health Action International (HAI) Africa is a regional network of Civil Society Organizations, Non-governmental Organization, healthcare providers, academics and individuals in Sub Saharan Africa, focused on promoting policies and practices that increase people's access to quality essential medicine that are correctly prescribed and appropriately use. HAI Africa has members and contacts in more than 20 African countries. HAI Africa is a member of HAI global network that includes three other regions: HAI Europe and North America based in Amsterdam, The Netherlands, HAI Latin America based in Lima, Peru and HAI Asia/Pacific, based in Colombo, Sri Lanka.
(http://www.haiafrica.org )

[2] Ecumenical Pharmaceutical Network (EPN) is a global, independent, apolitical non-profit Christian organization that works in a context of increasing poverty and need for health services by addressing pharmaceutical issues in the church healthcare system. The Network, which started as a programme within the Christian Medical Commission of the World Council of Churches, is supported by and works with all Christian denominations and has over 100 members in over 30 countries worldwide that include Christian Health Associations and Drug Supply Organizations. Our members work in many of the areas where the issues of access to essential medicines are critical to the health and well being of the populations served.
(http://www.epnetwork.org )

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HAI Africa
mailto:info@haiafrica.org