IPR – A Tug of War

We live in a country with current estimated population of about 1.27 Billion and second most populous country after China. The statistics shows that India has approximately 17.31% of total world’s population. With the growth rate of about 1.58%, our country India is expected to have more than 1.53 Billion of population by 2030 and will become world’s most populous country. Currently India has death rate of 6.4 deaths/1000 people and infant mortality rate of 30.15 deaths/1000 live births. Some of the reasons of India’s growing population are poverty, illiteracy, high fertility rate, decline in death rates and immigrations from neighboring countries.

India being a vastly populous country, approximately 29.5% of its population lives below poverty line (according to Rangarajan Committee). Latest Millennium development report by UN says that approximately one third of world’s 1.2 Billion poorest people lives in India. No doubt India one of the fastest growing country but it is wealth distribution gap is widening day by day and because of which a niche rich class is enjoying every privilege but the vast poor class is not able to access their daily needs and forget about costly education and medical expenses.    

Recently we have seen 66^th Indian Republic Day parade with Barak Obama as a chief guest. It is for the first time that US state head has visited India twice and given this honor by India. This visit by Obama can be seen in terms of strengthening strategic partnership among first democracy (USA) and the largest democracy (India). Obama’s comments on IPR policies in medical sector during India-US CEO forum was harshly criticized by international health activists. There are concerns that US is pressuring India to take care about drug manufacturing MNC’s seeking patent protection in India.

In April 2014, USTR Special 301 report on intellectual property protection has retained India on priority watch list in terms of infringement of US patent laws. The report further says that about 10-40 percent of drugs sold in Indian markets can impose a serious threat to health and safety of patients. The Indian pharmaceutical industry reacted angrily to this allegation. MSF an international medical humanitarian organization also reacted and criticized this report for speaking against Indian allegation.             

The intense attack on Indian IPR started in 2012 when patent controller in India allowed the production of an expensive cancer drug which reduced its price by 97 percent. The American pharmaceutical industry is not happy because India does not allow patens on same drug with minor modifications which curbs ever greening of monopoly.  It is to be noted that Indian IPR policies are not favored by USA and EU but this has been a live saver for Indians and other developing countries which are in need of urgent modern medical treatment. Even health groups in US like OXFAM America, GAP, TAG, AVAC and others have requested Mr. Obama to support India in providing high quality and low cost generic medicines which are essentials of health care around the world.

India is a leading manufacturer and exporter of low cost generic drugs. In 2013-14, Indian pharmaceutical industry registered exports worth $14.84 Billion. USA itself is the major importer of these medicines.   Even if we talk about historical President George W. Bush’s PEPFAR AIDS relief program, about 98 percent of drugs was purchased were generic from India. Before Indian companies manufactured generic versions at $1 per day, AIDS medication was costing around $10000 per person per year.

Low cost generic medicines manufactured by India are taking care of public health in developing countries, especially in third world countries. This also contributes to Indian economy and is expected to grow at CAGR of 14 percent and expected to reach a turnover of $47.06 Billion by 2018. Now it will be interesting to look at Indian government concerns regarding low cost generic medical treatments for all or the shift of concern towards profit oriented MNC’s. We can only expect Indian government to take care of its huge population and other countries who cannot afford expensive medical care and to take humanitarian approach instead of taking capitalistic approach. This humanitarian approach will not only save billions of lives but also will help in contributing Indian economy.