With drugs costing Rs9 lakh, should govt invoke compulsory licensing?

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With drugs costing Rs9 lakh, should govt invoke compulsory licensing?

Published: Monday, Oct 25, 2010, 3:55 IST

By Priyanka Golikeri | Agency: DNA

With patented medicines for treatment of HIV/AIDS, cancer and hepatitis C beyond

the reach of many patients due to their exorbitant prices, some say there is a

case for invoking the provision of compulsory licensing.

Compulsory licensing is a green signal given by the government, judiciary, or

competition commission to a third party to produce and supply a generic version

of a patented drug in lieu of reasonable royalty to the patent holder. It is a

legally recognised means of overcoming barriers to accessing medicines.

" It's not just poor and developing countries such as Mozambique, Zambia,

Malaysia, Indonesia, Brazil, Ecuador that have invoked compulsory licensing in

the past. Even developed countries such as Italy and Canada have invoked it in

the past few years for medicines which were unaffordable or unavailable.

India has never done so, despite prices skyrocketing and patients having no

choice but to forsake treatment, " said a health expert who works in Madhya

Pradesh.

An intellectual property expert in Mumbai said compulsory licensing is the best

option available as it allows production of low-cost generic versions of the

drugs and also gives royalty income to the patent holder.

Loon Gangte, a HIV positive person and president of Delhi Network of Positive

People said the older HIV/AIDS medicines are distributed by the government, but

newer drugs, which are patented, are not. " They are beyond our reach despite

being there in the market due to the prices. "

Around 99% of hepatitis C patients across the country, especially in the

northeastern states like Manipur, Mizoram and Nagaland, are beyond the purview

of treatment, said Deepak Leimapokpam from the Manipur Network of Positive

People in Imphal, who is afflicted by both HIV and hepatitis C.

" In a densely populated country like India, how many people can actually afford

to pay lakhs for medicines? And treatments for cancer, hepatitis, HIV/AIDS are

for long durations, often lifelong. Very few manage to source funds for a short

while, and then just give up on treatment, " said YK Sapru, founder chairman of

Cancer Patients Aid Association.

Member nations of the World Trade Organisation have agreed in the 2001 WTO Doha

Declaration on public health that every member has the right to grant compulsory

licensing and has the

freedom do determine the reasons upon which it should be granted.

" Compulsory licensing is not reserved only in emergencies. In matters of public

health, it can be issued. Government can't keep waiting for more and more people

to go below poverty line due to healthcare spending before taking any concrete

step, " says the Mumbai-based intellectual property expert.

However, the Organisation of Pharmaceutical Producers of India, a group of

multinational drugmakers, feels that provisions like compulsory licensing can

impact foreign investment and innovation in the country.

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