GST makes ‘orphan drugs’ prices soar

MUMBAI: Prices of exorbitantly-priced life-saving medicines, used to treat rare diseases have increased by 12%, with implementation of Goods and Services Tax, resulting in skyrocketing bills and leaving many patients in the lurch.

These high-value 'orphan' drugs used in bone marrow transplant, classical Hodgkin Lymphoma, Crohn's disease and melanoma, prescribed usually lifelong with certain treatment running into crores, have now been burdened with the 12% additional levy, which was nil before July.

While no specific details are available, the market size is estimated between Rs 50-60 crore, with 100-odd life-saving drugs imported to treat rare diseases mainly genetic disorders, that affect a small percentage of population.

According to Rare Diseases and Disorders — Research, Resource & Repository of South Asia, 2011, there are over seven crore patients suffering from these diseases in India. As against this, GST impact on drugs sold in the country has largely been neutral, with no significant increase in prices as domestic companies absorbed the increased tax liability of around 2.29%.