A European pharmaceutical industry group today welcomed the settlement of a legal case over South Africa's right to import cheap copies of AIDS drugs.
The terms of the settlement meet the goals of both industry and the South African government, the European Federation of Pharmaceutical Industries and Associations, representing European drug manufacturers, said in a statement.
"There is no doubt that the real winners are the South African patients who need the research, development - and delivery - of quality medicines and vaccines," the federation's director general Mr Brian Ager said.
"The way is now clear for industry to work together with the government in addressing the health care needs of South Africa", he said.
In Pretoria earlier, the world's biggest drug makers abandoned a bid to stop South Africa from importing cheap copies of their AIDS drugs and acknowledged the right of poor countries to strike the best deals they can.
The Pharmaceutical Manufacturers' Association of South Africa and 39 international drug companies unconditionally withdrew their application in the Pretoria High Court to stop implementation of a new drug law in the country.
AIDS activists hailed the climbdown as a victory for Africa's 25 million people living with HIV and AIDS.
In a settlement announced by the government and the drug firms, South Africa agreed to consult the industry on a 1997 law allowing for so-called parallel imports of patented drugs and the generic substitution of key medicines.