R 031838Z  FEB 88
FM AMEMBASSY BRASILIA
TO SECSTATE WASHDC 2347
USDOC WASHDC
INFO AMCONSUL RIO DE JANEIRO
AMCONSUL SAO PAULO
AMCONSUL RECIFE
AMCONSUL PORTO ALEGRE

[snip]

SUBJECT: BRAZIL PHARMACEUTICALS: UPDATE ON PATENTS

[SNIP]

1.  NEWS OF THE PROPOSED FEBRUARY 29 USG-GOB

CONSULTATIONS ON PHARMACEUTICAL PATENTS REACHED THE SAO 
PAULO PHARMACEUTICAL INDUSTRY QUICKLY.  THREE 
EXECUTIVES FROM U.S. SUBSIDIARIES HERE CALLED ECONOFF 
ON JANUARY 29 TO CONFIRM THE NEWS.  ECONOFF SAID NO 
OFFICIAL DATE FOR CONSULTATIONS HAD BEEN SET.  

2.  MEANWHILE, U.S. SUBSIDIARIES HERE ARE MOVING AHEAD 
WITH THEIR PUBLIC RELATIONS/LOBBYING DRIVE FOR PATENT 
PROTECTION.  ACCORDING TO ELI LILLY DO BRASIL PRESIDENT 
ROBERT POSTLETHWAIT, INDUSTRY PLANS TO HIRE A PUBLIC 
RELATIONS FIRM TO DO MUCH OF THE WORK.  THE MOST LIKELY 
CHOICE IS SEMPREL, WHICH WORKED FOR INDUSTRY IN 1987 
(REFTEL A).

3.  ON JANUARY 29, AN INDUSTRY GROUP AUTHORIZED SEMPREL 
TO "BRAZILIANIZE" PFIZER'S 1987 REPORT ON THE BENEFITS 
OF PATENT PROTECTION TO BRAZIL (REFTEL A).  SEMPREL 
WILL USE A BRAZILIAN AUTHOR, PREFERABLY ON KNOWN TO 
PRESIDENT SARNEY, TO ADD A LOCAL TOUCH TO THE REPORT.  
PUBLICATION IS EXPECTED IN MID-FEBRUARY.

4.  THE GROUP WILL ALSO HIRE A HIGH-POWERED BRAZILIAN 
LAW FIRM TO WRITE A DRAFT ORDINARY LAW PROVIDING FOR 
PATENT PROTECTION FOR PHARMACEUTICALS.  THE GROUP WANTS 
A DRAFT ORDINARY LAW READY BY APRIL, WHICH THE 
CONSTITUTION IS EXPECTED TO BE FINISHED.

5.  IN ADDITION, POSTLETHWAIT AND OTHERS HAVE DEVELOPED 
A LIST OF INFLUENTIAL PEOPLE TO BE TARGETED IN THE 
LOBBYING CAMPAIGN.  THE LIST CONTAINS ALL 51 MEDICAL 
DOCTORS IN THE CONGRESS, OTHER POWERFUL LEGISLATORS, 
INFLUENTIAL OFFICIALS IN THE RELEVANT MINISTRIES, AND 
GROUPS SUCH AS THE FEDERAL COUNCIL OF MEDICINE.  
POSTLETHWAIT SAID HE IS MAKING IT CLEAR TO HIS 
COLLEAGUES THAT THEY ARE GOING TO HAVE TO TAKE AN 
ACTIVE ROLE IN LOBBYING THESE PEOPLE.

6.  STILL TO BE DONE, ACCORDING TO POSTLETHWAIT, IS A 
STUDY ON THE OPPOSITION EXPECTED FROM NATIONAL 
LABORATORIES.  INDUSTRY IS HOPEFUL THAT ACHE, THE 
LARGEST NATIONAL PHARMACEUTICAL COMPANY, WILL SUPPORT 
THE PATENT PROTECTION ISSUE, ESPECIALLY NOW THAT IT HAS 
ENTERED INTO A JOINT VENTURE WITH MERCK SHARP & DOHME 
(REFTEL B).

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ON MERCK
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7.  REGARDING MERCK, A PHARMACEUTICAL INDUSTRY CONTACT 
SAID THE UPCOMING VISIT OF MERCK'S U.S. CHAIRMAN COULD 
BE CRUCIAL.  IF THE MERCK CHAIRMAN PUSHES THE PATENT 
PROTECTION ISSUE HARD DURING THE VISIT, HIS VISIT WILL 
BE HELPFUL.  IF NOT, THE GOB WILL BE ABLE TO SAY TO THE 
USG "HOW IMPORTANT CAN PATENT PROTECTION BE IF MERCK'S 
CHAIRMAN DIDN'T EVEN MENTION IT WHEN HE WAS HERE."  
(COMMENT.  OUR CONTACT'S CONCERN ABOUT WHETHER MERCK'S 
CHAIRMAN WILL SPEAK OUT ON PATENTS IS BASED ON HIS 
CONVERSATION WITH LOCAL MERCK MANAGERS, WHO ARE UNSURE 
HOW THE JOINT VENTURE WITH ACHE WILL AFFECT THE 
COMPANY'S POSITION ON PATENTS.  END COMMENT.)



------------ 
COMMENT
-----------

8.  POSTLETHWAIT AND OTHERS IN THE PHARMACEUTICAL 
COMMUNITY WILL CERTAINLY BE AVAILABLE TO DISCUSS THE 
PATENT ISSUE WITH THE USG TEAM IF AND WHEN IT COMES 
DOWN FOR CONSULTATIONS.  WE THINK SUCH DISCUSSIONS 
BEFORE THE CONSULTATIONS COULD BE EXTREMELY USEFUL.

DACHI
SHLAUDEMAN