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Policy shift on generic drugs

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August 05, 2017

What is the issue?

  • Earlier government made a decision that all doctors will have to prescribe medicines using their generic or chemical names.
  • Now there is a policy shift that doctors cannot be banned from prescribing the brand names of the generic drugs.

What are generic drugs?

  • A brand-name drug product is originally discovered and developed by a pharmaceutical company.
  • It is estimated that bringing a new drug to market costs the innovator on average $802 million over a period of 10 to 15 years.
  • So a patent allows the innovator to sell the branded drug exclusively in order to recoup money spent during development and to generate a profit.
  • Generics are off-patent, less-expensive drugs that are chemically similar to an innovative drug.

What are the reasons for the shift?

  • There is a contradiction in asking doctors to prescribe generics when the market is full of branded drugs.
  • There is a lack of confidence in the quality of medicines being dispensed.
  • Writing out all the key ingredients while prescribing even a simple medicine can be difficult.
  • If the chemist does not understand the prescription, it creates more problems.
  • Pharmacists in chemist shops will gain more power to decide which brand of generic drug is to be given to a patient.

How can the issues be addressed?

  • Patients in developed countries get their medicines from a well-developed healthcare system and not the retail market.
  • Investment in the drug regulatory and testing infrastructure to ensure that quality drugs.
  • Companies are supported to meet GMP (Good Manufacturing Practices) norms.
  • Only then will consumers and doctors have confidence that a medicine picked up anywhere in the country is of a good quality.

 

Source: Business Line

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