PHA-Exch> MNC oppose affordable patented drugs in India

[Claudio Schuftan]

   From:    drdabade at gmail.com



http://timesofindia.indiatimes.com/Business/India-Business/MNCs-oppose-affordable-patented-drugs/articleshow/4452221.cms

*The Times of India*

*MNCs oppose affordable patented drugs*

27 Apr 2009, 0009 hrs IST, Rupali Mukherjee, TNN

NEW DELHI: Government's efforts to bring in affordable patented medicines
for chronic and lifestyle ailments, may hit a roadblock with multinational
companies trying to stall the move.

The mechanism would have increased affordability of drugs like Tarceva,
Herceptin, Pegasys and Januvia used for treatment of chronic ailments, which
at present are exorbitantly priced, costing patients lakhs of rupees every
year.


It is understood that government had put forth a model to pharma MNCs, which
has not met with much enthusiasm from the industry. Under the mechanism
discussed with industry body Organisation of Pharmaceutical Producers of
India (OPPI), the government has asked MNCs to ensure that patented drugs
introduced in the country are priced cheapest here than anywhere in the
world.


When contacted, an OPPI representative said, "we have submitted our comments
to the government and would not like to talk about it till the issue is
finalised". At present, these drugs, mainly for oncology, HIV, diabetes and
heart disease are out of the reach of the common man.

Significantly, the recommendations say that patented block-buster drugs
which have no substitute in the market and offer substantial therapeutic
benefit, should be offered at prices 40% to 70% cheaper than the maximum
retail price through the public health system, official sources said.


In other words, a patient who has been prescribed these drugs can procure
them if he has a prescription generated through a government hospital.


For such drugs, the government will not charge any taxes, and since these
are directly delivered to the patient there would be no trade margins, which
would have pushed up costs further. This second class of patented drugs,
which are part of the mechanism under discussion would constitute a small
number, only two or three novel drugs of a total of say, 10 patented drugs
imported into the country


The recommendations are important as it would have set the trend for future
discussion, and finally brought in a system to improve access and
affordability of patented drugs for consumers.
A top executive with a pharma MNC said: "We need to know the process of
negotiation, what drugs will be part of the exercise and benchmarking is
being done for whom. We need clarity on a host of issues before we can
decide". Sources, however, pointed out that these were "tactics to delay the
issue so it gets prolonged". In European countries, including the UK,
Germany and France, where healthcare costs are borne by governments or
insurance companies, there is a mechanism in place for negotiating prices of
expensive drugs for the benefit of the consumer.

Back home, the government had set up the committee two years back with an
intention to keep a check on high prices of imported and patented drugs.
Besides the pharma ministry, the committee comprises of officials from NPPA,
department of industrial policy and promotion, and health ministry.
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