The Organization of Pharmaceutical Producers in India has decided to oppose tooth and nail the move of the central government for price negotiation of drugs and medical devices patented abroad and are marketed by MNCs in India.

Terming the government move as "Discriminatory and against the spirit of patent protection", an OPPI spokesman said, that, the very objective of patent protection would get lost if the government starts price negotiation of drugs and medical devices patented abroad and are marketed by MNCs in India.

Aiming to ensure that the drugs and medical devices patented abroad are made available at affordable prices to the common man in the country as and when the multinational companies launch them in India, the Central government had recently initiated some steps to have system for it.

The Union Chemicals and Fertilizers Ministry had held a meeting of the concerned parties in this regard recently in Delhi and sought their suggestions from the industry associations to create a methodology for price negotiation of drugs and medical devices patented abroad and are marketed by multinational companies in India. The first meeting in this regard was attended by representatives of IDMA and OPPI. The industry associations were asked to submit their suggestions to make a methodology for price control.

Opposing the move, the OPPI spokesman said that, the government move will only prove to be counter-productive as the multinational companies will not launch their products in the country if such a restriction is imposed on them, creating a situation where the needy patients of this country will not have easy access to the latest products of the pharmaceutical industry. The research and development (R&D) is a highly capital intensive and highly risky business, and a company spends an average of Rs 1 billion US dollar for a new drug to develop. "The companies have to recover the money spent on R&D and also to continue the R&D activities", the spokesman said.

Anyway, the patented drugs are not meant for the masses. For them, there are other drugs of different molecule with similar action which are cheaper also. Doctors can prescribe these cheaper medicines to the patients. For treating fever, there are different drugs like paracetamol, aspirin, nimesulide and others. And to top it all, no company will sell their product which a patient cannot afford at all. "Who will purchase a substitute soft drink for Pepsi at Rs 50 instead of Rs 10 a bottle, whatever be its quality claims?," the spokesman countered.

Claiming that the medicine prices are the lowest in India, the OPPI spokesman said, that, the root of the problem in India is the lack of a social security scheme. In most other countries, there are social security schemes to help the poor and the allocation on healthcare in those countries is at least around 3 to 4 per cent of the GDP. But unfortunately in India, the allocation on healthcare is still below 1 per cent of the GDP.

The OPPI's stand on this issue is understandable as a number of multinationals are in the process of introducing various patented drugs into the Indian market in the coming months, cashing in on the amended Patent Act. Many of them are learnt to be lobbying hard with various government agencies to ensure that no restrictions are imposed on the pricing of patented drugs.