Use compulsory license and put ceiling to curb prices of patented medicines: Govt panel
New Delhi, Jan 27 : In order to cut prices of patented medicines for cancer and rare diseases, a high-level government panel has made a series of far reaching recommendations including granting "compulsory license" to any Indian pharma company to produce drugs without the consent of the patent holding firms.
The report, a copy of which is with PTI, also recommended putting a ceiling price on life-saving medicines after analysing the Purchasing Power Parity (PPP) of various countries, a standard followed in majority of the western world to fix medicine prices.
Multinational pharmaceutical companies sell most of the patented drugs in India and they have been vehemently opposing any sort of price cap or grant of compulsory licensing to any other company to produce drugs being sold by them.
The Indian pharmaceutical market has an annual turnover of around Rs 2.3 lakh crore. While majority of these revenues come from sales of generic drugs, around 30 per cent of it comes from patented drugs.
The committee noted that the prices of patented anti-cancer and antifungal drugs are "on the higher side" and cited the example of Rs 1 lakh being the price for just one injection for cancer treatment.
It said there is a need to moderate the prices of patented anti-diabetic drugs and also recommended that patent owning companies should be "encouraged" to give "voluntary licenses" to other pharmaceutical companies.
Moreover, it has stated that the government should explore procurement of more drugs at lower rates for public health care systems through negotiations with pharmaceutical companies.
"The committee after a detailed analysis has come to the conclusion that it is important to put in place an effective mechanism to regulate the prices of patented medicines in India," the committee's report stated.
Officials said the government is examining the panel's report finalised around March last year.
If a company develops an innovative drug, it is granted an intellectual property right for 20 years in the form of a patent. During these 20 years, the patent-owner company can prevent any other company from manufacturing the same medicine, according to existing norms.
Worried about "high prices" and "unaffordability" of patented drugs in India, the Department of Pharmaceuticals (DOP) formed this inter-ministerial committee of Joint Secretaries to "suggest ways and means to fix the prices of patented drugs in the country".
According to a source, the committee submitted its report during February-March last year. However, on January 3 this year, the DOP announced new patented drugs as well as drugs used to treat "rare diseases" would be exempted from price control for a period of five years from the date it is marketed in the country.
Till the January 3 notification, the DOP had the powers to bring patented drugs under price control through powers given under the Drug (Prices Control) Order 2013.
However, the DOP or National Pharmaceutical Pricing Authority (NPPA) rarely used these powers to cap prices of patented drugs.The NPPA works under the DOP only.
"A scientific analysis based on the PPP index of different countries may enable setting a benchmark price for the medicines patented in India," the committee said.
It added: "Based on the relative PPP index vis-a-vis India, the ex-company sales price in these countries shall be adjusted, and thereafter, the lowest PPP adjusted price anywhere in the world shall be the ceiling price applicable in India. This will ensure that Indian patients get the lowest price in the world for a patented medicine."
Besides recommending compulsory licensing, the report added that "voluntary licensing arrangements between a patent holder and another party" in a country "may afford opportunities for significant cost-containment and therefore the same may be encouraged".
The Department of Industrial Policy and Promotion (DIPP), NPPA and the Ministry of Health and Family Welfare were also part of this committee.The Indian Patent Office works under the DIPP.
On November 29 last year, Union Health Secretary Preeti Sudan wrote to the DIPP and the DOP asking them to "bring drugs used for treatment of rare diseases under compulsory licensing so that their costs become reasonable and affordable to the patients".
The World Health Orgnaization (WHO) defines "rare disease" as often debilitating lifelong disease or disorder condition with a prevalence of 1 or less, per 1,000 population. Some common rare diseases are Haemophilia, Pompe disease, Thalassemia, Sickle-cell Anaemia and Gaucher's disease.
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UDF leaders see local body poll trends as pointer to 2026 Assembly elections in Kerala
Thiruvananthapuram (PTI): Buoyed by the strong performance of the Congress-led UDF in the local body polls, KPCC president Sunny Joseph said on Saturday that the front's results indicated the people had rejected the LDF government.
According to early trends, the UDF was leading in more grama panchayats, block panchayats, municipalities and corporations than the LDF.
The local body polls were held in two phases in the state earlier this week.
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Speaking to reporters here, Joseph said the people of Kerala had extended their support to the UDF.
"We could expose the LDF government’s anti-people stance and the people understood it. The LDF’s fake propaganda was rejected by the people. The UDF is moving towards a historic victory," he said.
He said a united effort, proper preparations, good candidate selection and hard work had resulted in the Congress and the UDF’s victory in the elections.
Asked about the prospects in the Thiruvananthapuram Corporation, Joseph said the party was studying the matter and would comment later.
LDF convenor T P Ramakrishnan said the results would be closely examined.
According to him, the government had done everything possible for the people.
"Why such a verdict happened will be examined at the micro level. People’s opinion will be considered and further steps will be taken," he said.
He added that decisions would be taken after analysing the results. "If any corrective measures are required, we will initiate them and move forward," he said.
AICC leader K C Venugopal said the results showed that people had begun ousting those who, he alleged, were responsible for the loss of gold at Lord Ayyappa’s temple.
"This trend will continue in the Assembly elections as well. It is an indication that the people are ready to bring down the LDF government," he said.
Venugopal said the UDF had registered victories even in CPI(M) and LDF strongholds.
"I congratulate all UDF workers for their hard work. Congress workers and leaders worked unitedly," he said.
Referring to remarks made by Chief Minister Pinarayi Vijayan against the Congress on polling day, Venugopal said the voters had responded through the verdict.
"I do not know whether the chief minister understands that the people are against him. Otherwise, he does not know the sentiment of the people. The state government cannot move an inch further," he said.
He said the results indicated a strong comeback for the UDF in Kerala.
Asked whether the Sabarimala gold loss issue had affected the LDF in the local polls, Venugopal said the CM and the CPI(M) state secretary did not take the issue seriously.
"We took a strong stand on the matter. The BJP played a foul game in it," he alleged.
On the BJP's role in the local body elections, Venugopal alleged that the party operated with the CPI(M) 's tacit support.
"The CPI(M) supported the central government on issues such as PM-SHRI, labour codes and corruption in national highway construction. The CPI(M) is facing ideological decline, and the state government’s policies are against the party’s own decisions," he said.
Meanwhile, LDF ally Kerala Congress (M) leader Jose K Mani said the party could not win all the wards it had expected in the elections.
He congratulated winners from all parties and said the party would closely examine the losses and identify shortcomings. "Later, we will take corrective measures," he added.
Senior Congress leader and MP Rajmohan Unnithan said the trends in the local body elections indicated that the UDF would return to power in the 2026 Assembly elections.
"We will win 111 seats as in 1977 and return to power in 2026. The anti-government sentiment of the people is reflected in the elections," he said.
Unnithan said the people were disturbed and unhappy with the present government.
"The trend indicates the end of the LDF government," he added.
CPI(M) MLA M M Mani said the people had shown ingratitude towards the LDF despite benefiting from welfare schemes.
"After receiving all welfare schemes and living comfortably, people voted against us due to some temporary sentiments. Is that not ingratitude," he asked.
Mani said no such welfare initiatives had taken place in Kerala earlier.
"People are receiving pensions and have enough to eat. Even after getting all this, they voted against us. This is what can be called ingratitude," he said.
Muslim League state president Panakkad Sayyid Sadiq Ali Shihab Thangal said the results were beyond expectations.
"The outcome points towards the Secretariat in Thiruvananthapuram, indicating that a change of government is imminent. We are going to win the Assembly election," he said.
