In a move that can throw open big scope for the small and medium pharma players in the country and curtail the huge profit margins of multinational biggies, the UNITAID is making an initiative called 'patent pool' to make drugs for neglected diseases affordable across the world.

To begin with, the world agency is looking to create the patent pool for AIDS/HIV drugs and later it would be expanded to cover TB and Malaria drugs. With Indian generic producers being key players in the scheme of things, the WHO Regional Office for South East Asia is holding an informal technical consultation with lots of Indian companies here on June 23, it is learnt. Leading companies like Ranbaxy, Torrent, Jubilant, Strides Arcolab, Matrix, leaders of organizations like SPIC and IDMA, manufacturers from Thailand and Bangladesh are expected to attend the meeting.

The idea is to get patent holders to offer their intellectual property rights to the pool and the world agency, based on the strength of the patent, will get the drug manufactured by selected Indian companies specially the SME players for distribution under WHO programmes across the world.

A licensing agency will manage the licences, negotiate and handle royalties, thus simplifying a process that usually requires complex negotiations and litigation over patent rights before cheaper medicines become available. Without having to wait for patents to expire, which usually takes up to 20 years, producers will be able to make generic versions under predetermined licensing conditions.

As the researches were done in universities, the multinational companies usually fund them through smaller companies against marketing rights on royalty basis. Once the patent is ready, the multinationals would keep the licences from smaller companies and make a huge profit. Thus even the scientist was deprived of his rightful share. Now the Indian companies, especially the small and medium firms, will have better chance to get associated with it, said a leader representing the SME sector.

In July 2008, the UNITAID Executive Board decided, in principle, to establish a voluntary patent pool for medicines. The initial focus of the Patent Pool will be on increasing access to newer antiretroviral medicines (ARVs) and encouraging the development of adapted formulations. The Pool will aim to promote reductions in the price of existing ARVs and stimulate the production of newer first- and second-line ARVs by increasing the number of generic producers of these medicines. The pool will also help to fill the gap for 'missing essential ARVs', such as fixed-dose combinations of newer products and special formulations for children.