Pharma Sector – Drug Pricing, NPPA, FDC, Generics, etc.

[op-ed snap] The need for growth in Indian biosimilars


Mains Paper 3: Science & Technology | Awareness in the fields of IT, Space, Computers, robotics, nano-technology, bio-technology

From UPSC perspective, the following things are important:

Prelims level: Biosimilars, Biologics

Mains level: The potential of generic drugs market in India & the world and how India can lead in its production


India’s rise in the generic drugs market

  1. By responding strongly to a soaring demand for generic drugs, India’s pharmaceutical producers emerged as world market leaders in this sector and were a major business success story in the 2000s
  2. In the process, Indian producers made a valuable contribution to reducing costs and to expanding access to life-saving treatments for patients, both in emerging markets and in developed countries

Current trends in the pharma sector

  1. Globally and especially in developed countries there are waves of consolidation among pharma retailers
  2. There is stiffer competition from Chinese pharma manufacturers
  3. Along with these, an uptick in generic drug applications have combined to put downward pressure on drug prices

Emerging prospects in the pharma sector

  • There is a new push to produce more so-called complex generics
  1. These are hybrid medicines that often contain complex active pharmaceutical ingredients (the part of the drug that produces its effects) or formulations, or routes of delivery
  2. Indian firms have succeeded in capturing 19% of the global market in complex generics thus far
  • Pharma companies would be well-advised to pursue is to expand their footprint in the biosimilars market
  1. Biosimilars are the generic versions of biologics medicines made from animal or plant proteins as opposed to chemicals
  2. Biologics are important market disrupters because they are transforming how we treat diseases, including certain types of cancer, rheumatoid arthritis, and multiple sclerosis
  3. Biologics are notable for targeting the underlying causes of diseases as opposed to just the symptoms, with fewer side effects

Need for biosimilars 

  1. The growth in the biosimilars market is welcome from a human development standpoint because they are more affordable than biologics, the high cost of which often puts them out of reach of many patients
  2. Promoting the production of complex generics and biosimilars can have a positive development impact given how targeted they are toward treating non-communicable diseases such as cancer, asthma, and arthritis
  3. An alarming spike is being seen across developing countries in the prevalence of non-communicable diseases
  4. For example, diabetes is fast becoming an epidemic in developing countries, with rates rapidly catching up with those of the developed world

Way forward

  1. It is increasingly clear that the segment of the pharmaceutical market where the demand will grow the fastest in the coming years is products that treat non-communicable diseases
  2. The government should, therefore, strive to promote strong, indigenous producers of complex generics and biosimilars as this has enormous potential to improve public health in emerging markets
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preetish kamat
preetish kamat
1 year ago

Please give a summary of The nature of Dissent editorial in the Hindu of 4th September 2018. I think it is important for Ethics paper 4