Thai Drug Administration Chief Resigns

BANGKOK, Thailand -

The recently appointed head of Thailand's Food and Drug Administration resigned Monday amid controversy over the new government's plan to review a policy of overriding patents on several expensive cancer-fighting drugs.

Chatree Banchuen was named secretary general of the FDA last week, making him the government's chief negotiator with multinational drug companies over pricing and licensing terms.

Chatree said he decided to resign because he felt "uncomfortable with the politics," explaining that critics had brought up old, unproven allegations linking him to corruption in a computer procurement project in 2003. He called the allegations "politically motivated and groundless," without elaborating.

Chatree's predecessor, Siriwat Thiptharadon, was transferred to an inactive post last Tuesday by the new government of Prime Minister Samak Sundaravej. Siriwat called his transfer unfair, charging it was because he supported compulsory licensing of drug patents.

Compulsory licensing is intended to make some drugs more affordable by taking away the patent holder's ability to control the drug's price, a benefit of being a drug's exclusive supplier. International trade rules allow a government to issue a compulsory license to manufacture a generic version of a drug only in case of a national public health emergency.

Siriwat was the architect of the government's policy leading to the issuing of compulsory licenses on Jan. 4 for four cancer-fighting drugs.

In the past two years, the Thai government has also issued compulsory licenses for several drugs used to treat AIDS and heart disease, drawing criticism from companies holding patents on the drugs.

The drug companies dispute whether the circumstances in Thailand qualify for such licenses.

Newly appointed Public Health Minister Chaiya Sasomsup said Monday the ministry will review the licensing policy on the cancer-fighting drugs, while ensuring patients have affordable access to the medicines.

He said that if negotiations fail to get drug companies to lower their prices, compulsory licensing would be maintained.

Chaiya earlier said the government planned to review the drug licensing policy because U.S. drug manufacturers might ask Washington to apply trade sanctions against Thailand.

The four drugs issued compulsory licenses on Jan. 4 are Novartis (nyse: NVS - news - people )' Imatinib and Letrozole, Sanofi-Aventis (nyse: SNY - news - people )' Docetaxel, and Roche (other-otc: RHHBY.PK - news - people )'s Erlotinib.

Novartis AG and Roche Holding (other-otc: RHHBY.PK - news - people ) AG are Swiss, and Sanofi-Aventis SA is French.