Does it really matter? It appears that India will no longer issue compulsory licenses to generic or biosimilar manufacturers to make a patented drug based solely on whether that patented drug's price is perceived to be too high. Good news for the multi-nationals right? They seem to think so.
Instead India has set up a new Committee to set pricing for patented drugs by comparing to prices negotiated between manufacturers and governments in US, Canada, France, Australia and New Zealand. The thought seems to be this comparison will lead to higher prices than what consumer advocates in India would like to see but less than what pharma companies would charge on their own, but woud still be acceptable to these same companies.
But....the Committee would take per capita gross national income (GNI) and purchasing power parity in these countries into account. The ratio of GNI in comparison country/GNI in Indiawould be calculated and used to adjust the price of the medicine for India from that of the comparison country. This adjusted price would also serve potentially as the starting point for future reductions.
Ok. No compulsory licensing. Yes to a Pricing Committee. What if they price products lower that what pharma is expecting? Are we back where we were?
Posted by Bruce Lehr Mar 1st 2013.