The committee on price negotiation of patented drugs constituted by the Department of Pharmaceuticals (DoP), will meet industry representatives on Friday to identify possible negotiation options that can lower the cost of patent-protected and imported medicines for life-threatening illnesses in the country.
The move comes a day after yet another arm of the government – the Department of Industrial Policy and Promotion (DIPP) – released a discussion note on compulsory licensing provisions to ensure availability of affordable medicines. Expanding the span of price control is one of the four options highlighted in the DIPP note to address the problem of exhorbitant prices of patented medicines.
The price negotiation committee consists of DoP officials and has been holding meetings with various stakeholders on the issue for some time now. Officials said the committee is almost ready with its views and the final recommendation will form part of the department’s submissions to a Group of Ministers (GoM), formed to consider a draft pharmaceutical policy prepared by the ministry of chemicals and fertilizers.
Both the initiatives, analysts feel, have been driven by the government’s sense of urgency to explore various options under existing laws for bringing down the cost of medicines to Indian patients.
While price negotiation will act as the primary deterrent for the high cost of patented medicines, compulsory licensing intends to take away the exclusive manufacturing rights from the patent holder for mass, low-cost manufacturing and resultant patient benefit.
The domestic drug industry has supported both moves, unlike foreign multinational drug manufacturers that remain cautious.
Indian Pharmaceutical Alliance (IPA), the select grouping of leading Indian drug makers, has welcomed the move. “We (IPA) are glad that the government has finally woken up to the need for compulsory licensing. This will help address the public health problem,” D G Shah, secretary general, IPA said.
Members of the Organisation of Pharmaceutial Producers of India (OPPI), the representative body of foreign drug majors, were not willing to comment on the government move.
Incidentally, the Prime Minister’s Office (PMO) had recently sought views from various ministries on an OPPI submission that aimed at strengthening India’s intellectual property norms to allow them market exclusivity for their patented medicines. Compulsory licensing, in a way, attempts to undo, what foreign drug multinationals are trying to aim for, domestic drug makers say.
