US embassy cable - 04ABUDHABI2980

UNCLAS SECTION 01 OF 02 ABU DHABI 002980 
 
SIPDIS 
 
SENSITIVE 
 
DEPT FOR NEA, NEA/ARP, EB/TPP/MTA/IPC 
STATE PASS TO USTR - JASON BUNTIN and DOUG BELL 
USDOC FOR USPTO 
USDOC FOR 4250/DOC/MAC/ONE/GUGLIEMI 
GENEVA PASS USTR 
 
E.O. 12958: N/A 
TAGS: ECON, ETRD, KIPR, WTO, USTR, TC 
SUBJECT: TIFA works: UAEG Fixes IPR Problems 
 
Refs: Abu Dhabi 1824 
 
1. (SBU) Summary:  In a successful use of the Trade and 
Investment Framework Agreement (TIFA) process, the Embassy 
worked with Pfizer and the UAEG to stop violations of 
Phizer's patent on Viagra.  In May, we facilitated meetings 
between Pfizer and the UAEG to identify Pfizer's concerns, 
and the Charge subsequently wrote letters to the Ministers 
of Health and Information and to the Minister of State for 
Finance and Industry to help push this along.  Both Minister 
of Information, Sheikh Abdullah bin Zayed al-Nahyan (ABZ) 
and Minister of State for Finance and Industry, Dr. Mohammed 
Khalfan bin Khirbash have both personally committed 
themselves to resolving outstanding IPR issues.   EconChief 
and Pfizer representatives met with UAEG officials on August 
23 to follow up on earlier efforts to have the UAEG enforce 
Pfizer's IPR on Viagra and shut down the illegal production 
and sale of drugs containing the active ingredient in 
Viagra.  The UAEG had already taken action on one of the 
drugs, Trex, and promised to take action on the remaining 
two.  On August 30, EconChief received copies of Ministry of 
Health communiqus banning the sale of both 4M6 and Satibo. 
The UAEG has asked for more information from MSD on its drug 
Zocor in order to address MSD's concerns.  End Summary. 
 
2. (SBU) The Embassy used the UAE's commitment to the TIFA 
process and interest in moving to a FTA to launch a 
coordinated campaign with U.S. pharmaceutical 
representatives to address the concerns of U.S. 
pharmaceutical companies about patent infringement.  The 
campaign involved meetings with UAEG officials and letters 
from the Charge to the Ministers of Health and Information 
and to the Minster of State for Finance and Industry.  In 
Washington, Minster of State for Finance and Industry 
Mohammed Khirbash personally committed himself to solving 
the Pharmaceutical Industry's concerns.  On August 23, 
EconChief and Pfizer representatives met with UAEG officials 
from the Ministries of Finance and Industry, and Health to 
discuss steps that the UAEG had taken to address U.S. 
concerns about patent infringement of U.S. pharmaceutical 
products and to encourage further progress. (see reftel) 
Ahmed el-Hakim, Pfizer's regional director for health 
policy, raised four outstanding issues: the registration of 
the Viagra composite, 4M6, which violates Pfizer's patent on 
Viagra; the sale of two drugs, which also contain the active 
ingredient in Viagra; and the purchase by the Dubai 
Department of Health and Medical Services of a generic 
version of MSD's Zocor. 
 
4M6 
--- 
 
3. (SBU) El-Hakim again noted that 4M6 violated Pfizer's 
patent and asked for an update on the UAEG's efforts to stop 
its production.  Ministry of Finance Assistant Under 
Secretary for Revenue and Budget Khalid Al-Bustani stated 
 
SIPDIS 
that the Ministry of Finance had told the Ministry of Health 
that 4M6 violated the UAE's IPR law and should be 
deregistered.  He asked Dr. Easa Al Mansoori, the Director 
of the Drug Control Department at the Ministry of Health to 
respond.  Al-Mansoori agreed that 4M6 violated UAE 
regulations and that the UAEG needed to stop its production. 
On August 30, EconChief met with Pfizer's Dubai General 
Manager Zaydan Abuissa, who shared a letter from the 
Ministry of Health to Julphar (the UAE company making 4M6) 
stating that 4M6 violated UAE law number 17 of 2002 
regarding the protection of IPR.  The letter ordered Julphar 
to: 1) stop manufacturing, handling, and export of 4M6; 2) 
stop importing Sildenafil (the active ingredient in Viagra 
and 4m6) and 3) recall all of the products from the local 
market.  Abuissa stated that Al-Mansoori had told him that 
he expected that the Ministry of Health would issue a 
ministerial decree revoking the registration of 4M6 upon the 
minister's return from vacation.  The letter, however, put 
Julphar on notice that it was in violation of UAE law. 
 
SATIBO 
------ 
 
4. (SBU) During the meeting, El-Hakim representatives asked 
for an update on efforts to deregister Satibo, a herbal drug 
that also contained Sildenafil.  The UAEG agreed that the 
versions of Satibo, currently in the UAE, contained 
Sildenafil and violated Pfizer's patent.  They agreed to 
withdraw it from pharmacies.  On August 30, Abuissa and Al- 
Bustani both passed EconChief a copy of a MoH circular 
banning the sale and use of Satibo and ordering its 
withdrawal from the market.  Abuissa also passed EconChief a 
copy of an article in the English language "Khaleej Times" 
announcing that the MoH had banned Satibo.  He added that 
the story was also in many of the Arabic language papers. 
(Note: It is unclear whether this circular has the legal 
effect of formally withdrawing Satibo's registration, 
without an additional ministerial decree.  Pfizer's lawyers 
will be checking.) 
 
Trex 
---- 
 
5. (SBU) Pfizer representatives asked for an update on the 
UAEG's efforts to ban Trex, another Viagra clone.  The UAEG 
said that they had already issued the instructions pulling 
it from pharmacies and blocking its import.  Al-Bustani 
passed out a circular from the Ministry of Health stating 
that Trex was not registered with the Ministry and that it 
was not authorized to enter the UAE and should not be sold. 
He also handed out a letter from the General Secretariat of 
Municipalities to all municipalities instructing them to 
prohibit the sale of Trex. 
 
Zocor 
----- 
 
6. (SBU) Amed El-Hakim, speaking as a PhRMA representative, 
also asked about the generic version of the MSD drug Zoccor, 
which is being sold in the UAE.  El-Hakim explained that 
this was a "country of origin" and data protection issue. 
Zoccor 40 mg is still protected in the U.S. although not in 
Europe.  Both sides agreed that PhRMA would go back to MSD 
and ask it to provide the UAEG with more information and an 
explanation of its position. 
 
Comment 
------- 
 
7. (SBU) The Embassy and U.S. Pharmaceutical companies 
capitalized on the U.S. - UAE TIFA Council to orchestrate a 
coordinated -- and successful -- effort to resolve some 
outstanding IP concerns.  Post believes that these results 
demonstrate both the commitment of the UAEG at senior levels 
to improving IPR protection in the UAE and the success of 
the TIFA Council process.  ABZ and Khirbash are both 
personally seized with IPR protection.  ABZ has told us that 
we should let him know about any problems with IPR and 
Khirbash has publicly put his prestige on the line promising 
to solve the problems.  UAEG interest in moving rapidly to 
FTA negotiations is leading to progress on a number of 
issues, including IPR.  We will continue to follow-up to 
ensure that the decisions are implemented. 
 
Sison