After the compulsory licensing episode last month, the Indian government has made another blatantly pro-people and pro-local industry move by allocating a massive $5.4 billion to provide free essential medicine to its people. Under the new policy, doctors will be limited to a generics-only drug list and face punishment for prescribing branded medicines. From city hospitals to tiny rural clinics, India's public sector doctors will soon be able to prescribe free generic drugs, vastly expanding access to medicine in a country with 40 per cent population living below the poverty line. Initial funding for the policy implementation has already started to flow. Let’s put this in perspective: $5.4 is equal to five years of turnover of pharmaceutical industry in Pakistan. But, what are essential medicines and why is it important to have them for free in the health system? Simply put, essential medicines are the much shorter list of safer ones amongst the lot of the thousands of those out there and are proven to save lives and improve health when they are available, affordable, of assured quality and properly used. Still, lack of access to essential medicines remains one of the most serious global public health problems. Access to health care, and therefore to essential medicines is part of the fulfillment of the fundamental right to health. In fact about 30 per cent of the world’s population lacks regular access to essential medicines; in the poorest parts of Africa and Asia, including parts of Pakistan, this figure rises to over 50 per cent. In our low-and middle-income countries, public medicine expenditure has traditionally not covered the basic medicine needs of the majority of the population. In these countries 50 per cent to 90 per cent of medicines are paid for by patients themselves. Improving access to essential medicines today is perhaps the most complex challenge for all actors in the public, private and NGO sectors involved in the field of health care. This Indian initiative to spend such a colossal amount on essential medicines is without doubt a game changing policy with far reaching consequences. While it can change the lives of hundreds of millions of patients, it is also going to hurt the Big Pharma as a ban on branded drugs stands to cut them out of the windfall in one of the world's fastest-growing drug markets. Big Pharma has already started to react negatively to this decision calling it "a considerable blow to an already beleaguered industry, recently the subject of several disadvantageous decisions in India," (Chris Stirling, the European head of Chemicals and Pharmaceuticals, the reference here is made to the recent decisions of compulsory licensing awarded to generic manufacturers against the Big Pharma in India). This story from India had me reminiscing of the generics policy of Pakistan of 1972, which had noble intentions behind it, and the reasons of its failure. I am wondering if the Indians had in mind what brought down the generics legislation in Pakistan and how might they do better with the hazards and pitfalls on the way. Pakistan was one of the first countries, in 1972, to introduce the Generic Drugs Act. The policy brought out by the government of Zulfiqar Ali Bhutto’s People’s Party was politically motivated and poorly designed. Soon after its promulgation, the parties hurt by the new policy (doctors lead by the Pakistan Medical Association and the Big Pharma), got together and started to conspire against the policy. They lead a ferocious campaign against it alleging generic drugs were of poor quality and low efficacy. Unfortunately, the subsequent lack of regulation or control of generics led effectively to the market being flooded by poor quality drugs, and the scheme needlessly failed a couple of years later. Though Indians indeed are no amateurs at this kind of wrangling with the traditional opponents of healthy policies, the recent access to medicines policies followed in India are a good proof of their abilities to deal with such opposition, but nevertheless, my advice to them is to watch out on this one. Talk about promoting generics and indeed any real policy initiative to prefer generics over branded patents run a spear deep into the heart of the Big Pharma and their cronies in the medical profession and they will do everything possible to fail any policy promoting generics.
Ayyaz Kiani is a public health specialist. He heads Devnet – a network of development consultants. Based in Islamabad, he has travelled around the world and continues to do so to meet fellow travelers.
The views expressed by this blogger and in the following reader comments do not necessarily reflect the views and policies of the Dawn Media Group.

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Comments (39)

Mahesh
July 15, 2012 5:50 am
A very good article indeed backed by good study, examples and opening possibilities for two-way exchange between governments pro-generic versus anti-generic stand. A silver lining must be found to preserve both these. For those, who can afford, can ask the physician or physicist for a branded medication. I thank you.
Jamal
July 11, 2012 6:39 am
Good and pro poor move by the indian government. Really appreciable.
Dr.swapnil patel
July 11, 2012 6:02 am
same is true for indian government hospitals. They provide medicines for free and all the other services you name. i am a doctor in civil hospital ahmedabad,gujarat.. this is the largest hospital in asia. Here we provide everything free to the poor people with BPL card(below poverty level). If certain drugs or other disease related equipments(like tracheostomy tube) are not present with hospital then we give them local purchase form which enables them to buy those from private shop and gov. will pay those shop owners later. So, BPL card owner won't have to pay any money to anyone. This facility is also extended to all the scheduled tribe and cast people and all the school going children(below 18). To the middle class people we provide all the things free except x-ray, CT scan and MRI. Even this charges would be very nominal. We have so many patients from pakistan, afghanistan and africa also.
Sami
July 11, 2012 5:53 am
Perhaps this can be regarded as a success to the social program of Mr. Perfect, Amir Khan. A few weeks earlier he has taken this issue in his program "Satyamev Jayte". I would recommend everybody to watch these programs as issues are similar in Pakistan too and he focusses mainly on how to solve them or what to do to minimize the problem.
ranjeet
July 11, 2012 5:32 am
ALI PERHAPS GO THROUGH MALAYSIAN GOVT OWN RECORD U FIND LITRACY RATE IN MALAYSIA IS LOWER THEN INDIA AND JUST CHECK THE EDUCATION BY KNOW THE AMT OFF SCIENTIST AND RESEARCH DONE BY COUNTRY
Ali
July 10, 2012 7:04 pm
Malaysia has higher literacy rate and a bunch of people are well educated which makes the difference.
uthmanmalik
July 10, 2012 4:18 pm
Good point! It definitely in the end comes down to a company in Switzerland doing research and then trying to make sure that it only sells in Western Europe otherwise some Asians will copy it and use it without giving them any reward.
uthmanmalik
July 10, 2012 4:16 pm
You should read the article again or stop visiting liberal newspapers!
uthmanmalik
July 10, 2012 4:15 pm
There is no study which proves that providing all that will avert people migrating. People migrate out of UK every day for better opportunities in countries like Australia and they have all of your above pre-requisites available here.
citoyen
July 10, 2012 11:03 am
Thank you for a very timely article, Mr Kayani. Your apprehension is justified. Indian pharma companies , have largely succeeded in turning the medical profession into paid cheer leaders for their products. The Health Ministry would do well to take note of your warning and learn from the Pakistan experience.
Tamilselvan
July 10, 2012 10:53 am
Once something is given free such as generic drugs the Govt. will have to put up a tender and the lowest bid gets the order. Since it is generic some of the pharmacies mainly from Bihar, UP and Gujarat will make them with less than prescribed ingredients. Margin is low, volume is high and it's free to patients. Reputed companies cannot bid as the price requested is sometimes lower than the manufacturing costs. Therefore, lower potency drugs are in the market. Please don't compare with UK and NHS as there if one is caught they are thrown in jail but in India and maybe in Pakistna too the guy opens another plant. Schedule H drugs are taken in suitcases to Africa and neighbouring countries and sold and some of them do not have the prescribed amount of the main ingredient. This is similar to Rs 2/kilo rice distributed in many states in India. Quality is bad but who in the right mind can cultivate rice in these days for Rs 2/kg.
narendra
July 10, 2012 10:15 am
good article to read
A Shah
July 10, 2012 9:54 am
Our government must be squirming like crazy. How dare the Indians put its people before profit!!! Is this against the constitution of Pakistan!
verticalpharmacy
July 10, 2012 9:49 am
Free medicine to poor looks good on paper, but the fact will be different as corruption is present in India on a big Scale
mohan pai
July 10, 2012 9:37 am
Good article by ayyaz kiani
Hari Har
July 10, 2012 7:32 am
Poor people in Pakistan also expect the same from Pakistan government. Don't disappoint them.
DSP
July 10, 2012 6:19 am
Generic medicines are normally priced at a fraction of cost of branded ones. This should be encouraged. But will this work given the fact that over-prescription of tests as well as medicines is a major sources of revenue for all except for the patients who are financially ruined.
Test
July 10, 2012 4:34 am
The incentive is that there's millions of prospective customers among the hundreds of millions of middle/upper classes in society.
Test
July 10, 2012 4:32 am
The funding for this initiative is besides all the other social initiatives.
Dhanus Menon
July 10, 2012 4:25 am
Perhaps the author should advise the Pakistani govt. and leave the Indian decisions to the Indians.
sam
July 10, 2012 4:01 am
second last paragraph should be kept in mind... That it where the challenges do present...
raika45
July 10, 2012 3:47 am
Not necessarily so.My country Malaysia has been providing free medicines [both generic and original] in government hospitals and clinics for years.We also get free x-rays,blood tests and urine tests.
ROHIT PANDEY
July 10, 2012 1:14 am
I don't know if the policy won't backfire. After accepting the patent regime,Indian pharmaceuticals did concentrate on doing their own research,conduct clinical trials and do off shoring for western companies in drug discovery and manufacture.. I wonder if this move will backfire on the government in GATT,,, All this will not bring Rahul Gandhi to power.It will not add to the efficiency of the pharmaceutical sector.
ramanan
July 9, 2012 10:39 pm
@thamiz, I am happy to see a comment like this from a fellow tamil, knowing how much this culture of 'free provisioning' is ruining India, particularly Tamil Nadu. You must write in Tamil newspapers and magazines. My school in Karaikudi is languishing for want of good teaching aids and lab facilities while the children are getting cycles and laptops free!! Ramanan
Prabhakar Shenoy
July 9, 2012 7:56 pm
Dawn as a newspaper has excellent articles. This write up on warning India what to watch while promoting generic medicine is very good. I am an Indian origin person settled abroad who always hears vitriolic opinions about Pakistan. However, I find Dawn's articles are very balanced views towards India. Hence, I often read your paper over the web.
Cyrus Howell
July 9, 2012 7:41 pm
The poor are awaiting free anything.
Sajai Paul
July 9, 2012 6:57 pm
This is a good move by the govt. and as the author said, a gamechanger. Yes there have been some disasters, but it is unfair to say that all schemes have their money siphoned away. MNREGA has successfully provided employment to famine affected farmers in some states. Where it has not worked has a lot to do with the state government. RTI has been a tremendous success. So has Polio Eradication. So not all schemes have failed. Where it has failed, we can hope that they too will succeed in future through a change in administration or legislation or other means. For those worried about how the pharma companies will survive, please tell me in a country where we have many dirt poor people, does it make sense to charge as much for life saving medicines as developed countries like USA and Europe? Please note that while pharma companies are cribbing (including Bayer from the compulsory licensing episode), not one pharma company has left India. Sure, their profit margins will get affected but India is a big country with over a billion people and they can still make lots of money on wafer thin margins. Also I would like to point out to the author that there is every likelihood of India succeeding in this. Unlike Pakistan, Indian pharma already competes neck and neck with big pharma and is a global leader in generics. We are already sending drugs in support of WHO initiatives to Africa. Perhaps based on India's lessons, Pakistan can also eventually move to compulsory licensing rather than depending on the charity of big pharma.
nandkishor
July 9, 2012 6:21 pm
nothing to hail & praise about such decision of indian govt bcoz there are billions of rupees schemes declared but no fruits reached to poors, only bureaucrats & politicians get benifited..
Hamid Qureshi
July 9, 2012 5:42 pm
Perhaps Pakistan can educate its people, provide nutrition, meaningful livelihood; that way Pakistanis dont have to undertake perilous journeys to escape to the West.
indian
July 9, 2012 5:10 pm
India is already spending billions to improve the quality of food, water, public toilets. It is not an "either / or " choice. Spending on free medicines is an excellent initiative that complements other areas
Kalyan
July 9, 2012 4:58 pm
One unanswered question is that if the Government backs these low cost Generics (that are often built after Big Pharma has invested in the R&D for a cure), this lowers profit margins for the companies that performed the R&D. This leads to cuts in R&D budgets and lower salaries for Scientists (Top Management won't reduce their salaries much but middle class scientists will get pay cuts or laid off). What then is the incentive for a private firm to invest in R&D?
Syed Saqib
July 9, 2012 4:37 pm
It is equal to Sasti Roti scheme of Punjab government in Pakistan. These governments spend a huge money on cheap popularity and the core issues remain untouched.
Manu
July 9, 2012 3:37 pm
Yes - but we now have Amir Khan to stoke peoples' backing and watchfulness of the new initiative as he has done with his national program 'Satyamev Jayate' [Truth alone Triumphs]. The Collector of a District in Rajasthan has managed to bring the level of govt. medical reimbursements expenditure on govt. servants down from Rs. 100 cr to to Rs. 9cr. All India this is expected to bring the level down from Rs. 3000 cr to Rs. 300 cr spent on reimbursement to govt servants. Top flight admionistrators can pull this off.
RIP
July 9, 2012 12:53 pm
Perhaps India should provide clean drinking water, healthy food, public toilets, and a non-toxic environment to it's people. Then they won't have to spend $5.4 B on free medicines.
Ali
July 9, 2012 12:52 pm
Nothing works in Pakistan. It is not the question of free or paid medicine.
madrasi
July 9, 2012 12:19 pm
In principle a similar policy is followed everywhere in the developed world. In the UK, the NHS maintains a list of drugs that over value for money and which can be prescribed by a doctor in the public sector. (These are usually generics). Any other drug and it’s a long and convoluted route to approval of prescription. Factors taken into account are the individual needs of a particular patient, unique advantages of the new drug being prescribed and of course availably of alternative from the approved list of drugs. Big pharma push hard to provide evidence that would include their drugs on this list. I'm sure they'll take the same route in India. The real problem in India today is not only about individual drugs or finance but more importantly easy access to quality health care within the state run system, which is decaying due to years of corruption and lack of accountability.
Tamilselvan
July 9, 2012 12:04 pm
Naseem, Anything free will lead to abuse. Let Pakistan be cautious about it and have checks and balances. Free electricity for farmers has lead to water table going down and wealty farmers/ city dwellers having genearators in thier farms for parties
Indian
July 9, 2012 11:51 am
Of course this is another ill fated attempt by the Congress government. MNREGA ( rural enployment scheme) $7.89 Billion, Free medicines $5.4 Billion. a compulsory 25% free school admissions in all unaided non minority schools, 2% Corporate social responsibility . Congress is doing everything for setting up the "durbar' of the " Prince" This will leave the exchequre empty and destroy all these industries. Only the bureaucrats make lots of money when schemes like this are implented in the third world. But in the name of socialism, there we go again!!!
NASEEM
July 9, 2012 11:18 am
Good move. At least thet are providing free medicines.