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 nevirapine. 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 Boehringer Ingelheim'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 Boehringer Ingelheim has patents similar
to those granted in the United States or the UK. (In countries where
Boehringer Ingelheim has substantially lesser intellectual property claims, for
example, in countries where Boehringer Ingelheim did not file for a "use"
patent for nevirapine, 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 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 Cheif Executive Officer
Boehringer Ingelheim Ltd.
Ellesfield Avenue, Bracknell
Berks RG12 BYS
United Kingdom
For Cipla Limited
Director