Pharma talks: Govt urged to safeguard public health

Rupali Mukherjee

Mumbai: Ahead of PM Narendra Modi’s visit to the US to discuss a ‘trade-package’ with US President, health activists, patient groups and the domestic medical device industry have urged the government not to take any decision or launch trade negotiations, which could undermine public health.

The commerce ministry and the US Trade Representative have been involved in negotiations to hammer out a trade package, before Modi’s scheduled visit, with price control on medical devices being a key focus area. Over the last few weeks, US pharmaceutical corporations have reportedly been lobbying with the Indian government to give up major health safeguards like price control on essential medical devices.

Leena Menghaney, head (India & South Asia), MSF Access Campaign, an international humanitarian agency, said: “India should be cautious while signing any trade package or launching trade negotiations with the US that may include harmful provisions threatening the country’s ability to produce and supply affordable medical products. Going by past practice, the key focus of the US in any trade pact has always been to prioritise the interests of its pharmaceutical corporations at the cost of people’s lives. The world can’t afford to see India’s pharmacy shut down to protect the profiteering of US pharmaceutical corporations.” India is called the pharmacy of the world, with every third tablet sold globally orginating from an Indian manufacturer.

Patient group All India Drug Action Network (AIDAN) said it’s shocked at the developments that threaten a reversal of the country’s long-held position on safeguarding its sovereignty to control and regulate prices of essential medical devices.

“It is evident that the government’s control of prices on medical devices has been the most prominent issue in negotiations around what is being referred to as a ‘mini trade deal’. In particular, we reject any attempt to dilute price controls through the smokescreen of trade margin regulation.”

The US industry is reportedly lobbying with the Indian government to replace price caps on medical devices, with regulation of trade margins, which may bring in 200-300% profit mark-ups back in the industry.

Price caps on stents were imposed in 2017 after irrefutable evidence gathered by drugs pricing regulator NPPA showed gross abuse and overcharging in the pricing of essential medical devices, with patients struggling with huge bills.

“Apparently, even last year their attempts to pressurise commerce minister Suresh Prabhu prior to and during his visit to the US to attend USTR, failed as he did not relent to MNC pressure, and decided to protect the healthcare interest of common masses”, Rajiv Nath, forum coordinator, AIMED, an organisation which represents the domestic industry, said.

The issue of price controls became a sticking point in Indo-US trade discussions and were among the reasons cited for withdrawal of India’s GSP privileges.