Brazil may break patent on Merck AIDS drug

RIO DE JANEIRO, Brazil - Brazil moved closer to breaking a patenton a U.S.-manufactured anti-AIDS drug after negotiations with Merck &Co. broke down.

The government last week declared Merck's efavirenz anti-retroviral drug a "public interest" medicine - a move thateffectively gave Merck, based in Whitehouse Station, New Jersey,seven days to negotiate lower prices with the government or haveBrazil strip the patent by issuing a compulsory license.

Negotiations began in November with Brazil demanding the sameprice for efavirenz paid by the Thai government - 65 cents per 600milligram pill. Brazil at the time said it was paying US$1.59 perpill.

The United States …