MSD, who holds the patent on Efavirenz, has been under increasing pressure to allow more companies to market generic versions of the antiretroviral drug – in the hope that increased competition will bring down the price.
According to the TAC, as much as 64c in every rand spent by the government on first-line Aids treatment is spent on Efavirenz.
No longer anti-competitive
"TAC is pleased to announce that MSD is no longer acting in an anticompetitive way, paving the way for the market entry of a wide range of affordable Efavirenz products," the TAC said in a statement.
Acting on behalf of the TAC, the AIDS Law Project (ALP) last year lodged a complaint with the Competition Commission alleging that MSD – the South African subsidiary of multinational drug company Merck – was unlawfully refusing to license Efavirenz on reasonable terms.
The TAC said they will not pursue this complaint any further since it is now largely a historical complaint. "Instead, TAC will focus on ensuring that the reasonable terms of the licensing agreements are appropriately implemented." – (Health24)
Source: Press release from the Treatment Action Campaign
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