Stands up to White House’s strong-arm tactics against manufacturers of generic equivalent
Over the summer one thing about U.S. President Barack Obama has become clear. His hawkishness in foreign policy affects not only nations like Pakistan and Yemen, which are saddled with U.S. drones carrying out targeted assassinations on their soil. India too is very much a victim of Mr. Obama’s harshest policy campaigns, albeit in a less headline-grabbing area: cancer medication pricing.
In a hearing on Capitol Hill that slipped under the radar of media scrutiny, a top Obama administration official blatantly pressed the case for the deployment of American lobbying power to keep the price of cancer drug Nexavar closer to the $5,000-per-month-mark that it now sells at in India.
In doing so, Deputy Director of the U.S. Patent and Trademark Office (PTO), Teresa Rea, was equally pushing for Congressional approval for the Obama White House’s strong-arm tactics to bully Indian manufacturers of Nexavar’s generic equivalent into giving up their plan to sell their product at a much more affordable $157 per month.
An insightful Huffington Post investigative report on the covert campaign by the PTO argued that during the 70-minute hearing, Ms. Rea “repeatedly castigated India's government for approving the generic drug, calling the move an egregious violation of World Trade Organisation treaties.”
According to reports Ms. Rea said that she was “dismayed and surprised,” by India’s decision and admitted to “personally” engaging “various agencies of the Indian government” in efforts to knock it down.
It is hard to miss the contrast between Mr. Obama’s domestic policies to keep drug prices low via the Supreme-Court-validated Affordable Care Act and his administration’s persistent efforts to protect drug firm revenues even in developing nations such as India, which have a toxic combination of poverty and rampant disease.
A principal stakeholder that would appear to be deriving vast profits under the aegis of the U.S. President’s protection is none other than pharmaceuticals giant Bayer AG. Despite the Germany-based company’s best lobbying efforts the Government of India has refused to bow to U.S. pressure and “continues to offer the generic alternative, which was approved in March after several months of negotiations with [the company],” according to the investigative study.
Following India’s decision not to yield to the clout of the deep-pocketed Bayer, whose earnings touched $3.4 billion last year, Indian pharmaceutical Natco Pharma obtained permission to sell the generic drug and pay a royalty of six per cent on the revenue derived to Bayer.
This arrangement is a widely accepted trade practice called “compulsory licensing,” and is supported by WTO treaties, “an effort to ensure that good health care is not merely a privilege for the rich,” and a process that is ironically used by the U.S. to address domestic drug shortages, the HuffPost report noted.
After her acerbic performance before Congress was criticised on the grounds that compulsory licensing was consistent with the WTO, Ms. Rea in a blog post reluctantly agreed that it “can be permissible under the TRIPS Agreement.”
Yet apparently adamant on blocking India’s efforts to make essential drugs affordable to the vast majority of its poor, she added that the U.S. was “trying to stop the granting of further compulsory licenses.”
Keywords: drug price, Indo-US trade row
The complicity of MNCs and Government......
We should be firm and lower the price of this drug even further if possible. However the
article goes too far by bashing Obama personally when there is no evidence for doing so.
The author must realize that unlike India, government departments have a far greater
degree of independence in their functioning. Ms Rea is simply an ill informed official and
there is no need to get excited and see this incident as a tool of US foreign policy!
Its a very good and bold decision taken by India !!!!
Bravo india. We are so proud
This is the first time India has stood against USA
The Indian govt. runs national research institutions like CDRI (Central Drug Research Institue), AIIMS etc. Besides, there are Desi private sector pharma giants who run their own "R & D" divisions. So, with a combined effort, our country should be able to discover, develop and manufacture drugs that are needed for our population. If we can develop indigeneous nuclear rectors, send spaceships to moon, produce super-smart IIT graduates, then finding new drugs (not copy existing ones) should not be a problem. After that we can supply these drugs to other poor countries either for free or at no-profit basis and also mock at greedy multinationals.
We cannot blame Ms. Rhea as she is doing her job. We cannot blame Bayer as they want
profit, and the drug was invented by them and not by any company. We have to negotiate
with Bayer and pay the balance due to them by govt of india.after all we subsidies every
thing
Finally, signs of a backbone among our politicians. There might yet be some hope for our country.
Who makes that drug? The drug maker decides the price, isn't it?
The buffalo and the stick analogy!
Having Recently heard about the generic drugs via Aamir's serial, was pleased that things like this are taking place in India too.
But, the way American's are trying to dig out the revenues, from the Indians, is an egregious situation.
Hope Indian govt. stand their ground and allow such drugs to continue in market.
Very good move by the Indian government. Happy to know that the US cant have it its way in all the things it wants.
Over the past century, starting from the first world war, US has been supplying bullets and bandages to most of the countries at war.
As a countermeasure, India should step up its efforts to sell its generic drug in the USA at its low price. Then we can see the effect this will have on Obama's campaign if he tries to stop his own people from getting affordable health-care like he's been trumpeting all along. US Pharma lobby is out there to gouge, not treat. It is not interested in healing anyone. Let's start rejecting all unhealthy US food habits and we will be healthy without needing medicine.
Such a bold and greatly necessary effort from the Indian Govt..which represents the country where the most of the Cancer patients would die if these Co. get patent on these medicine..
A bold and appreciable stand taken by Government of India.Such steps in future also are very much desired.AAM AADMI will always support those who will look after them.
Good to see India cares about the well being of its people and does not give in to the bullying of the superpowers/capitalists.
Wish India could show more spine and standup to the issues where it differs with the US and other super powers.
Thanks for highlighting this important issue. It is indeed sad that US
president, who is seen as one who believes in Universal healthcare and
fighting for victims by taking on health insurance company head-on, is
siding with Big Pharma and working against interest of poor patients in
Asia and Africa. It just shows how powerful Pharma and US chamber of
commerce is, especially in foreign policy.
Its how the big boss,US and its corporators always try to nullify very
few good provisions like compulsory licensing in the WTO, which
developing countries like India can use to safeguard their poor citizens
health. Indian Gov'ts position is well taken. The gov't here should
never bow down to such pressures.
I think India should not listen to US, and carry on the good deed of
supplying the generic medicine to the needy people. It's one of the
great efforts to reduce the burden on the family of person who is victim
of such disease. Shame on u , US president. This may be your first and
last tenure, so be loyal to the country and people, rather being one of
those greedy political gang.
If we want to survive in this globalized world we need to have an educated
populace that is capable of rejecting wasteful products and can say no to
strong arm tactics by voting in members of parliament who can stand upright. In
a democracy we end up electing people like ourselves. To see a reflection of
ourselves we don't need to look into a mirror, all we need to do is got to the
parliament and state legislatures. There we see a reflection of our collective
self in the psychological mirror.
It is commendable that at last India is standing up to face the arm twisting tactics of the US that has dual policies running simultaneously, in domestic and international market. It is high time that the US realizes that it can't have the cake and eat it too, all the time.
our government made us proud..
US exports not only unaffordable drugs to the poor world but it also exports disease by
manufacturing products that are unnecessary, drain valuable resource like water but
are filled with chemicals and additives that cause diseases like diabetes and cancer.
Soft drink and fast food are a major source of ill health. Let us hope India will not
buckle under pressure.
To the editors,
Please include a link to the Huffington Post article so your readers
may have an opportunity to read the report without having to expend
extra effort to find the article via a google search. This is the 21st
century, a URL in an article shouldn’t be that much of a deviation
from your established format.
Ms. Rea has no real understanding of India. In India $ 5,000.00 price tag for a
month dosage is like asking a cancer patient in USA to pay $ 250, 000 per months
dosage. You might as well say, the cancer patients in India do not use it.
No wonder in USA the healthcare costs are so high. Even $ 157 is a very expensive
medication for an Indian patient.
I think Ms. Rea should be asked to resign for lack of compassion and
commonsense to hold a senior level position.
This perhaps is the only instance of India standing its ground against U.S. Good.
Natarajan.
Bravo India! A move in the right direction.
Well done India. We have opened up the doors for other nations to fight the US stanglehold on some of domestic issues. We should export these generic drugs to countries who do not have the manufacturing capacity or cannot afford the US prices.
Congrats to Indian Government for their stand in this issue.
Bravo India! This is an issue on which India has a convincing argument, both on moral grounds as well as on commercial ones. India, with a huge population that requires basic healthcare, does not have the luxury of the West. We must provide drugs to all our citizens and at as low a cost as possible, preferably, for free. Multinationals like Bayer have a huge lobby and spend Billions to push their agenda.Frequently, the explanation is that Bayer etal spend huge amounts on development costs. But, once developed and after the costs are recovered, why should people be charged the same or higher rates? It is high time that the Drug Companies themselves offer preferential rates to the developing World, where this could be a 'life and death' matter
Every pharmaceutical company has the right to fix their price for their drug in India, Germany or US.
The US government has no right to fix the price of any drug in India, Germany or the US.
As long as the Indian generic drug manufacturer NATCO PHARMA obtained permission to sell generic version of the cancer drug, paying 6% royalty on revenue to Bayer of Germany, US, Bayer or India has no right to fix the price of the drug.
If Natco Pharma does not pay royalty to the patent holder Bayer of Germany, Bayer and Germany has the right to take punitive action for patent infringement, but not the US.
Self respect and some independence:
US really been ruling the world at least since ww1 and those countries even ex US allies were dumped if tried to assert their independence; Russia began that list as " dictatorial/communist";Chinese followed quickly though MAO was US ally. List grew during cold war; Any one challenging US bussiness group/practice/wall street etc had qualified to the club. LOOK at self respecting chinese: At the making of "vision/mission of league of nation ( a US document)chinese wanted to insert " all races are equal"; USA refused and chinese withdrew from league says Mr Nehru in glimpses of world history. Japanese fell in line and were rewarded with few islands.
Readers must realise that US govt reprsents US bussiness and pharmaceuticals are biggies. It will be interesting to watch Us reactions to indian stand. Feel pity for pakistanis ' major non nato ally' and fighting for access to US markets without any succes.Thanks for highlighting the issue.
$5000/month is insane. I'm proud, sensible minds are still working somewhere in
the Indian government.
Mr Obama is not the man the US elected four years ago. His policies have been very pro
American and Israel. He is a friend (!) of Pakistan yet his drones have attacked more civilians
there than so called terrorists. His targetted assassination of Osama bin Laden is not the way
a civilized nation Perseus her enemies. He is all gung ho for American businesses and to
hell with the rest of the world. We admired him at the time of his election but now we are
saddened by his behavior .
The argument that a drug that can be sold profitably at $157 be sold at an inflated and
for most Indians, unaffordable $5000 a month to fill the pockets of MNC giants is
ludicrous and obscene to say the least. If there is a WTO that condones such twisted
arguments, it should be thrown out.
God Bless India for looking after its poor in this respect.
Kudos to the Indian authorities.
Shame on the US authorities. Spare poor patients. Make profit elsewhere please....
It's good to see unity among the Leaders to act on the interests for the
country , than as individual. Such united steps will make India move out
of poverty.
-Sundar
Teresa Rea is doing her job as the Deputy Director of the U.S. Patent
and Trademark Office. The ethical side, that requires prices to be
lowered, is a policy decision and that is not for her office to take.
Bayer is a "For Profit" business venture that will look out for
maximizing their profit, the same way we will be expecting any place
that our money is invested. That is the nature of capitalization,
nature of business. Indian Government can very well say that they will
pay Bayer the difference and support the treatment and cure of her
citizens.
US Government provides billions of dollars in aid money to India
directly and indirectly thru the world banking organizations. It s
shameful that these instances be picked to slander the Government
without providing one an opportunity to know or acknowledge all the
facts.
It is really welcome to see the Indian Government remaining stead fast on
producing generic version of life saving drugs. However, we must not take such arrangements for granted. We can not keep on living off making generic version of
therapeutics that western research and companies spend years in discovering. We
must strengthen our research and development communities and encourage drug
development by pharmaceutical companies. That way such legal challenges
become on essential. We discover our own drugs, get our own patents and sell
them cheap. We can not keep on getting Bayer's drugs and insist on making them
cheap on the pretext of humanitarian needs. May have worked this time but will
not work for ever.
Yeah, Don't bow to US pressure no matter what.
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