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INDIA TO OVERHAUL ESSENTIAL MEDICINES LIST

August 26, 2005

India is planning to overhaul its National List of Essential Medicines in order to categorise drugs by therapeutic area. At present, the 354 medicines on the list are recorded as specific drugs with the definition of "life saving drug" not deemed to be clear. Under the new proposals, the medicines will be classed in areas such as epidemics, HIV/AIDS treatments and preventive medicines.

Currently, none of the 354 drugs on the essential medicines list are patented, and all are cheaply and freely available. However, India's chemicals ministry insists that fears of a substantial price rise in the near future are unfounded; consumers living below the poverty line are to continue to receive the medicines for free.

The ministry added that the limited purchasing power of Indian consumers would in any case act as a barrier to any rapid price rises, as would mechanisms such as compulsory licensing and parallel imports. Also, officials noted that the dynamics of the market in India might mean that some high-value patented products could simply be priced out of the market.

With the introduction of WHO-backed patent legislation in India, many consumers are fearful of drug price rises. However, drugs that are already on the Indian market, or those patented before 1995, cannot be patented in India. At present, only 15 to 20 innovative drugs enter the market each year.