The Intellectual Property Appellate Board of India on March 4 rejected the German firm Bayer AG's appeal of a ruling last year that allowed Hyderabad-based Natco Pharma to produce a cheaper generic version of Bayer’s kidney and liver cancer drug Nexavar. This would result in a treatment that more people would be able to afford. Our cover story for September 1-15, 2012 issue went behind the scenes to narrate how the initiatives of policymakers brought about this welcome change. In light of the latest ruling, we revisit that cover story.

Commerce and industry minister Anand Sharma did a tightrope walk in balancing commercial interests and ethical concerns – and all that was handled away from the limelight. Speaking with Bhavdeep Kang, Sharma shared his views on the pharma debates of our times. Excerpts from the interview:

How do you look at the compulsory licence granted for a cancer medicine?
In India, the compulsory licence has been given for the first time. The decision is in line with the TRIPS agreement and in conformity with our own law on patents. During the GATT (general agreement on trade and tariffs) negotiations, India took a firm stand on TRIPS and insisted on flexibility to ensure availability of lifesaving drugs at reasonable prices and this was agreed, as a way forward, to resolve the matter. This flexibility has been invoked by developing countries 63 times. In 2007, president Lula of Brazil made a similar intervention for HIV treatment.

Tell us about the government’s initiatives to bring down prices of lifesaving and other essential drugs.
The issue of access to lifesaving drugs has been occupying our attention for some time. The ethical debate on the subject has been going on since the late 1990s. The pharmaceutical industry mounted a legal challenge, but right ethics prevailed.

Also read: “Compulsory licence would be a trendsetter”

‘Cheaper drugs for the poor’ is a worldwide concern. Can India take leadership among the developing countries on this front?
Indian pharmaceuticals made a notable contribution and changed the discourse in terms of generic drugs, by making ARVs (antiretroviral drugs for HIV/Aids) available at low prices. Costs of treatment have dropped sharply, from $13,000 to $400 in some cases. Now, the new generation of ARVs must be made available, not only to us but to other developing and poor countries, at reasonable prices.

India will make available new generations of lifesaving drugs at reasonable prices to developing nations worldwide. For example, we have a malaria buster – an answer to drug resistant malaria developed for Africa.

Making lifesaving drugs available at reasonable prices is the duty of every state. Even in the US, healthcare and insurance are part of the national discourse. Earlier this year, the US FDA (food and drug authority) asked an Indian company (Sun Pharma) to produce Lipodox, a drug for treating ovarian cancer, to overcome drug shortages.

[This interview appeared in the September 1-15 issue of Governance Now.]