The Hindu Business Line : Patents Bill drives a wedge between health, pharma segments

HAS India played into the hands of companies who see the country as no more than a market of 50-odd million "paying public"? Or with the passing of the Patents (Amendment) Bill in both Houses of Parliament, has the country truly taken its initials steps in a long international journey?

As the Rajya Sabha too passed the Patents Bill on Wednesday — clearly it is not just Parliament that reflected a house divided. The emotive case for affordable medicines continued to drive a sharp wedge between other stakeholders in the health and pharmaceutical segment too.

"It is a very sad day for India when the (Patents) Bill was passed. It spells long-term disaster for India in segments such as food, agriculture and health," says Dr Yusuf Hamied, Cipla's Chairman and Managing Director and a vociferous campaigner in the affordable drugs movement.

Cipla had virtually become a household name in the African countries, as its generic or chemically similar AIDS drugs took on multinational companies selling in the market, recounts a representative with an international health advocacy organisation.

Companies such as Cipla and Ranbaxy sold AIDS drugs at a much lower price than its MNC counterparts and that made a difference between life and death, he points out.

"Not only are Indians affected by this Bill, but also people of Third World countries. The Amendment is not straight forward and has several discretionary measures," observes Dr Hamied.

The Indian Pharmaceutical Alliance, a platform for domestic pharma majors such as Ranbaxy, is relieved that some major concerns are resolved. They include the definition of patentability and the retaining of the ability to oppose a patent application after it is filed with the Patent Controller's office.

Another interesting development for domestic pharma companies is the provision that allows domestic companies to market a drug developed by another company after 1995 and marketed in India before 2005. The domestic company would, however, have to pay the innovator company a royalty.

Dr Swati Piramal of Nicholas Piramal India Ltd points out that the first step has been taken and now more business "would cross borders," in terms of contract manufacturing and research. Regarding the glitches that may have crept in to the Bill, she said that framework would evolve with time and experience on the ground.

On concerns of increasing medicine prices, she said there is always a price-range available on currently marketed drugs. For instance, a doctor has the choice of prescribing from the different generations of antibiotic drugs.

But Mr Y.K. Sapru, Founder-Chairman with the Cancer Patients Aid Association, said that nothing has changed with regard to patients with life-threatening illnesses like cancer.

An old hand in the pharmaceutical industry, Mr Sapru is fighting in the Supreme Court over access to Novartis cancer drug Glivec. Further, he points out that five other cancer drugs such as Gefitinib, Temozolomide, Zoledronic acid, Letrozole and Ganciclovir were set to see a multi-fold increase in prices, as a result of the Patents Bill. Prices on these drugs will increase between two and 12 times, he laments.

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