The domestic pharma majors, Cipla and Ranbaxy, have ranked at number 16 and 17 respectively among the 20 international pharma companies that were evaluated by the Netherlands-based “Access to Medicine Index” for the year, 2008. The list topped by UK-based GlaxoSmithKline (GSK) analyses the pharma majors’ performance on the parameters of medicine management, public policy influence and advocacy, investment in research and development in neglected diseases, patents and licensing, best practices in drug manufacturing and distribution, equitable pricing of drugs.
Both Cipla and Ranbaxy have found a word of praise for demonstrating their willingness to reduce the ARV price (the AIDS medication). According to the report, “While generic companies traditionally offer low prices, they are still in a position to offer discounts to people in need. At the end of 2006, both Indian generic companies agreed to the Clinton Foundation’s requests to significantly reduce the price of ARVs and in particular the price of formulations suitable for children.” Cipla also found a special mention for its involvement in sound practices with regard to heat-stable and pediatric formulations of HIV and malaria drugs. Ranbaxy found a special mention as it recognises the need for new treatments for neglected diseases and the opportunities India has to offer in terms of low cost and high scientific skills for R&D investments.
The two Indian pharma majors have underperformed in the categories of implementation of medicine management, lacking in best practices regarding patents and licensing.
The report observed that the number of R&D programmes focused on neglected diseases is growing. Companies with or without expertise relevant to R&D for neglected diseases indicate that they recognize the need for new treatments. Several companies appear to proactively use their expertise to respond to the lack of medicines for neglected diseases. European companies have traditionally been more active in this field but involvement of US-based companies is increasing. Most companies recognize the relevance of the access to medicine issue and have developed access to medicine policies at the board level. Companies increasingly rely on licensing agreements and/or technology transfer agreements with generics manufacturers in the developing world to increase manufacturing capacity and ensure long-term supply of affordable and good-quality drugs. Industry leaders have mechanisms in place to manage access to medicine risks but most companies fail to recognize business risks associated with access to medicine.
