As 6,800 new people worldwide are infected with HIV every day, according to the World Health Organisation, drug companies face a problem. Demand for treatment is sky-high, but the people who need it are the poorest of the poor, who cannot afford to buy the drugs.

Pharmaceutical companies must drop the price of anti-retroviral (ARV) drugs, which treat HIV/Aids, campaigners say. Many believe this can only be done if multinationals allow smaller generic drug companies, through licensing agreements, to manufacture ARVs cheaply.

This is starting to happen. The South African subsidiary of US drug giant Merck, MSD, in June granted licences to four generic drug companies to manufacture efavirenz (EFV), an ARV drug. All licensed EFV products can now be sold to the public and private sectors in South Africa. MSD also waived any right to royalties in these sales.

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