Prominent AIDS activist James Love has suggested a generic version of Zerit, a patented Bristol-Myers Squibb Co. drug, should be available in the United States because it was developed with government funds. Milne said the drug companies ran a big risk in pursuing the case because a courtroom loss would have set a global precedent. The South African government has pledged to consult the pharmaceutical companies in drafting the law and to honor international trade agreements. Brazil and many African nations aren't necessarily breaking any laws by importing generic drugs because often medicines aren't under patent protection in those countries. They don't want to create a template that would allow any group to disrespect patents.
Patents are the basis for high drug prices.
The companies say the revenue allows them to recoup development costs and generate profits to fund new medicines. Activist groups such as ACT UP and the Health Gap Coalition insist they have no desire to bankrupt pharmaceutical firms or kill the patent system. Analysts fear that, even with patent protection, reduced drug prices will eventually be too costly. Right now the costs are negligible, but then so is the number of people receiving the drugs. Negative response from shareholders and others has also been scant.