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IT COULD be a step towards breaking the deadlock over access to life-saving medicines in poorer nations.

Swiss pharmaceutical giant Pharmacia will grant other companies 鈥渙utlicences鈥� to make cheap generic versions of its anti-HIV drug delavirdine and is urging other patent holders to do the same.

Pharmacia made the move together with the International Dispensary Association, the world鈥檚 largest non-profit supplier of generic medicines to developing countries. In last week鈥檚 Lancet, Pharmacia and IDA executives argue that outlicensing has several advantages over selling brand drugs to poor countries at a discount.

The licences will allow companies to sell generic drugs only to poor countries with a clear need. As the products will be a different colour and shape to brand versions, they will be harder to smuggle back into Western countries for profit. Another problem outlicensing avoids is that discounting brand-name drugs in poor countries can put companies under pressure to reduce prices in rich countries too.

Charities have broadly welcomed the announcement. 鈥淭his is something new,鈥� says Daniel Berman of M茅decins sans Fronti猫res鈥� Access to Essential Medicines campaign.

But by itself, delavirdine will not be very useful, as it is only effective combined with other drugs. 鈥淭hey鈥檝e set the ball rolling with a drug that no one wants,鈥� says Berman. 鈥淏ut if GlaxoSmithKline, who have drugs that everyone wants, were to do the same thing then this could have a big impact.鈥�

Poor countries want the right to force pharmaceutical companies to allow them to make or import cheap generic versions of drugs. But World Trade Organization members such as the US are fighting these proposals.