Use compulsory license and put ceiling to curb prices of patented medicines: Government panel

In order to cut prices of patented medicines for cancer and rare diseases, a government panel in India has made a series of recommendations including granting "compulsory licenses" to any domestic pharmaceutical company to produce drugs without the consent of the patent holders, reported The Economic Times.

"The committee after a detailed analysis has come to the conclusion that it is important to put in place an effective mechanism to regulate the prices of patented medicines in India," it's report stated.

The report recommended putting a ceiling price on life-saving medicines after analysing the Purchasing Power Parity of various countries, a standard followed in majority of the western world to fix medicine prices, the news source said.

The committee noted that the prices of patented anti-cancer and antifungal drugs are "on the higher side" and cited the example of Rs 1 lakh being the price for just one injection for cancer treatment.

It said there is a need to moderate the prices of patented anti-diabetic drugs and also recommended that patent owning companies should be "encouraged" to give "voluntary licenses" to other pharmaceutical companies.

Moreover, it has stated that the Indian government should explore procurement of more drugs at lower rates for public healthcare systems through negotiations with pharmaceutical companies.

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