With a highly established manufacturing base and low-cost skilled manpower, India is likely to play a significant role in drug security globally. Even to this date, it has continued to be one of the most favored pharmaceutical markets on the global front. There is a reason why India is counted as the “pharmacy of the developing world.” Here, we will talk about some more reasons, which make this country the leading choice when it comes to drug establishments.
Even during the COVID-19 pandemic, the entire world depended on Indian vaccine and pharmaceutical manufacturers to get their daily dose of medications. According to recent statistics, India was known to have expected 5.84 crores of COVID-19 vaccines to around 70 countries as stated in March 2021.
For the product patents:
Before 2005, product patents were not granted in this third-world country. So, the pharmaceutical manufacturers got the chance to cover up low-cost generic drug versions with patents from other countries.
- Thanks to reverse engineering, India was the very first nation to bring affordable versions of HIV drugs to the market, alongside live-saving cancer medicine within a few years after the US launch.
- With multiple generic drug producers here, you can see a price reduction of more than 99% for drugs, covering various therapeutic areas like HIV, Malaria, TB, Hepatitis C, and more.
- India is also the leading name when it comes to drugs from non-communicable diseases, which are a major part of public health programs.
Affordable HIV treatment from India:
It was in the year 1999, when WHO mentioned HIV to be the number one killer in Africa. Major pharmaceutical companies were charging more than $10,000 for each patient on a yearly count for antiretrovirals. That made the treatment nearly impossible for multiple patients with lower income values.
- It was during that time when Dr. Yussef Hamied from India announced generic company Cipla to produce and supply triple fixed-dose combinations of HIV medicines at a charge of $1 a day.
- At this present moment, India is noted as the world’s main source of HIV medicines at affordable rates. It is one of the few countries with the power to quickly produce HIV medicines as generics.
- Even some of the major donors and procurers like PEPFAR, UNITAID, and Global Fund rely on India’s HIV medicines for the programs they are associated with. These drugs are not just cost-effective but proven to be of high quality as well.
Exporter of cheaper drugs:
Recent studies have shown that the Indian pharmaceutical arena contributes to around 5% of total world’s total consumption of generic drugs. Around half of the pharmaceutical output is exported at this moment.
- Consumers from the developed world have shown some positive results associated with generic Indian medicines, mainly because of lower cost value.
- In the same way, the Indian firms have worked their way to make their presence in multiple overseas markets.
- The main reason that fueled the emergence of the Indian pharmaceutical industry was the Patent Act of 1970. It allowed process patents in multiple major sectors like chemicals and drugs.
- During this point, the country was covering around 80% of drug needs through imports. However, when the country migrated to a product patent regime in the year 2005, the domestic suppliers offered around 80% of the national market.
- In this current environment, Indian firms have collaborated with global players to create drugs in bulk amounts.
- India has adopted the new environment by engaging in some strategic alliances with other global players. The country even offered R&D outsourcing services and engaged in contractual manufacturing to supply active pharmaceutical ingredients.
Presenting low-cost vaccines globally:
Want to know more about the low-cost medicines from India? Well, the recombinant Hepatitis B is the primary example. The larger pharmaceutical companies with multinational forefronts created a monopoly on vaccines. They ensured that the drug price was on a higher scale.
With a $23 per dose value, an Indian manufacturer saw an immediate need and with the absence of patent barriers, he created Hepatitis B vaccines to reduce the drug’s price to even less than $1 per dose. Right now, India holds the position of a primary supplier of vaccines to Ministries of Health in various countries and UNICEF.
Preventing “evergreening:”
India adopted a strict medicine patent law in 2005 that allows patent protection for all new medical compounds. That made it tougher to get patients on new forms of some existing medicines.
- The main goal of the law was to stop drug giants from involving in “evergreening.” It is an abusive patenting practice involving the pharmaceutical industry.
- Evergreening is aimed at filing and procuring separate patents related to various aspects of the same medicines. These patents were granted in the US and other countries routinely, but India chose not to follow the lead.
- India prioritizes medicine access over business interests revolving around the pharmaceutical industry.
- This approach was covered in line with the international trade rules. It encourages the proper entry of low-costing generics within the market.
The strong advantages:
In this post-COVID global order, one comparative advantage of India is that the country can rely heavily on becoming a major provider of global public-goods and services. It will cover the healthcare department, education, and tech support for innovation. These demands are here to stay and will rise in a couple of years. Some of the strong advantages that India has right now are:
- Strengthening the “soft power” of the country with the help of capacity building and offering technical knowledge to other developed nations
- Enhancing proper access to affordable and quality secondary and tertiary health services
- Investing highly in large-scale production of medical products, alongside expanding ancillary units
The final say:
There will always be a demand for accessible medicine, especially after the COVID-19 scenario. Even some environmental changes are triggering health concerns. The aging population around the world will also need active medical care. So, India is likely to play a major role in offering global medical support through affordable channels. The title, “pharmacy of developing world,” is likely to stay with India for a long time.