Nexavar deal : Side effects? Cancer treatment burden reduced. Thanks Indian Government!!

This morning, I have seen a good news, atleast for those families caught in the trap of cancer treatments. As subject says, one of the prominant effective cancer-treatment drug namely NEXAVAR, will be sold in the reduced price tag for its 120 tablet pack. The reduction amount is NOT in hundreds but in Lakhs of rupees, thanks to Indian Governments' efforts and legal actions.

To give you a figure of profit for those cancer affected families, this drug so far used to cost about 2.84 Lakhs(0.2 million rupees), but now it is going to cost about 2, 884 Rupees. Yes, you read it correct: From about 3 Lakhs to about 3 thousand rupees. Good news, indeed?? Here is how the story explodes


What is Nexavar and its speciality?
The drug is used for the treatment at the advanced stages of kidney and liver cancer. The drug stops the growth of new blood vessels and targets other important cellular growth factors. Though it is not a life-saving drug, it is a life- extending drug. In the case of kidney cancer, it can extend the life of a patient by four-five years, while in the case of liver cancer it can extend life by about six- eight months. 

So as you can see why this "life extending" is popular, the price tag also associated with the demand it drives across. Sensing the demand, Bayer, a German multi-national, held the patent for Nexavar (the brand name of sorafenib tosylate), which as of yesterday sold at Rs.2.84 lakh for its 120 tablet pack. That is the price set for "extending" the life, so far, in a crux!!

How Indian Government came into rescue?
Hyderabad-based Natco, saw an opportunity to make it in house at cheaper cost, but could NOT due to the patent and hence requested indian government, to be precise, Indian Controller-General of Patents, Designs and Trade Marks to grant the first-ever ‘compulsory licence' in India.

Natco Pharma had applied for the invoking of the provision last July after Bayer declined to accept its request for a voluntary licence to manufacture and sell the drug.

In his order issued on Friday, Controller of Patents P.H. Kurian also directed Natco Pharma to supply the drug free of cost to at least 600 needy and deserving patients every year.

Natco Pharma will also have to pay a royalty to Bayer at the rate of six per cent of the net sales on a quarterly basis, and the licence shall be valid till the entire balance period of the patent — it was granted in 2008 and will expire in 2020.

Quoting this incident, some one from that part of the world commented : "There can be profits. But, not profiteering at the cost of the patients". 

Looks like Socialist principle in Democratic country. I wonder how a capitalist view this incident? Wondering what the government would come and say, "Hey, Windows OS is being used by 75% of the people and you cannot charge X dollars for license, I will give compulsory license to local vendor to sell it for 1$, as the profiteering should NOT be at the cost of users"?? Funny as it may appear but worth while to think further into, huh!??