Non-Market Strategy for Big Pharma Companies as a Response to India’s Protectionist and Discriminatory Policies

1558 Words Aug 23rd, 2013 7 Pages
Leading Pharmaceutical companies have, in recent times, been alarmed by the some adverse regulatory rulings in India. First in a landmark decision in March 2012, the Indian Patent Office allowed a domestic company (Natco Pharma Ltd.) to sell a generic version of Bayer AG's cancer drug ‘Nexavar’ on the grounds that the German company’s drug not affordable to the local populace due to cost reasons. Then in March 2013, the Honorable Supreme Court of India denied patent protection to Novartis’s blockbuster cancer drug ‘Gleevac’ stating that Novartis had resorted to ‘evergreening’ in an effort to extend their monopoly beyond the standard patent period. The Indian ruling has attracted global attention especially from the Big Pharma companies …show more content…
In 2002, India exported goods worth USD 11.81 billion and imported good worth USD 4.10 billion and the same for 2012 was USD 40.51 billion and USD 22.33 billion respectively, demonstrating a growth of 294% (Refer Exhibit 1). There are a number of economic and trade issues between India and the United States of varying degrees of importance. For the United States, pressing issues are IP protection, trade in dual-use technology, access to selective Indian markets, and India’s participation in the U.S. Generalized System of Preferences (GSP) program. For India, pressing issues are negotiations of a bilateral investment treaty (BIT), U.S. restrictions on the trade in services (including the limited supply of H1-B visas), high-technology export controls, and the U.S. farm subsidy program. India has been a beneficiary developing country (BDC) in the U.S. GSP program since its inception in 1974. The GSP program was originally devised to be a program to promote development in low income countries. The core premise was that the preferential tariff rates in U.S. could promote export-driven growth in lesser developing countries. The GSP program expired on July 31 2013 and there are ongoing efforts in the U.S. Congress to renew GSP retroactively. The U.S. has used GSP as a Foreign Policy tool in the past. During the 2006 renewal process, Brazil was subjected to special scrutiny by Senator Charles

Related Documents