In the last year pharmaceutical companies have slashed the prices of AIDS drugs for African countries. They fear, however, that doing so could undermine the patents that are the linchpin of their highly profitable industry. They worry that activists for other diseases could use their AIDS drug offers to extract similar concessions on other drugs. And they are frightened at the prospect of their drugs hitting the black market, possibly leading to a stronger strain of the virus. Generic drugs, like those manufactured in Brazil, pose their own problems.
Analysts say that generics, circulating in even small quantities, weaken the entire patent process.
The drug makers are suing South Africa over a law allowing it to ignore valid patents and import or produce generic drugs. The manufacturers say that the revenue they earn through the patent system allows them to recoup development costs and fund new medicines. Executives are skittish, too, about revealing the financial details about their discount programs, which they fear might unnerve shareholders. They don't want to create a template that would allow any group to disrespect patents. This document was provided by the Centers for Disease Control and Prevention .