Patent Reform, Cheaper Drugs for US in Talks

As trade negotiations between India and the US move towards finalization, the pharmaceutical sector is at the heart of a significant give-and-take between the two countries.

- Priyanka Sharma & Dhirendra Kumar

NEW DELHI:

According to two people familiar with the matter, India's proposals include supply of low-cost complex generic medicines at reduced costs, patent reforms to allow earlier entry of generics in the US, increased US-based manufacturing by Indian pharma firms of active pharmaceutical ingredients (APIs) and fixed dosage forms (FDFs) and tariff exemptions for life-saving and critical medicines imported to India from the US.

An API is the main component of a drug (think paracetamol), while an FDF is a combination of two or more APIs in one drug, like a tablet with both paracetamol and ibuprofen.

India's offer comes in the backdrop of the US administration's desire to sharply cut local drug prices and gains significance as every second prescription in the US has a generic drug made by an Indian company.