Wednesday, March 27, 2013

Drug Policy of J&K state is pro-people


With the announcement of Drug Policy implementation from April this year, made by the Minister for Health, hornet’s nest has been stirred up again and a series of seminars, press conferences and related articles have yet again started surfacing in the local media. People associated with pharmaceutical trade seem to be bracing up for yet another round of agitation against the drug policy. Previous phase of agitation last year witnessed information being propagated in the newspaper columns that was, more often than not, factually incorrect. Before another bout of such misinformation campaign is unleashed, this article attempts to look at the actual facts and dwell into the pros and cons of state drug policy with a view to subside certain misgivings about the same.

First question that needs to be addressed is: what is the need for a state level drug policy? Need for a drug policy arises out of the fact that as per World Health Organization (WHO), one-third of global population comprising 1.3-2.1 billion people does not have access to medicines. At national level, an estimated 50-65% population within India does not have access to medicines as per the World Medicines Situation Report published by WHO. When we look at our own state of J&K, we find that 21% population in our state comprising of 24 lac people are living below the poverty line and it is these people who are deprived of an equitable access to essential and life-saving medicines. Furthermore irrational prescribing and irrational dispensing practices are also rampant in our state. Therefore there is need for a state level drug policy that addresses the issue of accessibility (including availability and affordability) of essential medicines and also devises discrete policy provisions for ensuring quality, safety and efficacy of medicines besides enforcing rational prescribing and dispensing practices and streamlining the procurement and supply chain management of medicines. Since 75%-80% of total expenditure on healthcare in India goes on medicines alone, need to have a drug policy even in absence of a comprehensive health policy in the state is therefore justified.

Next question that needs to be addressed is whether the state drug policy will render lakhs of people associated with pharmaceutical trade jobless. Answer is in negative because generic drug prescribing clause of the drug policy covers only 348 drugs listed in the essential drugs list which comprise only 30% of all the drugs approved in India that are at present available in the market whereas 70% of drugs will still be outside the purview of generic drug dispensing clause of the approved drug policy. Moreover generic drug prescribing applies only to govt. hospitals and not to the private sector pharmacies. It applies only to GMC and its associated hospitals besides hospitals and health centers in various districts. It does not apply to SKIMS and JVC hospitals either. Total budgetary allocations on Drugs and Instruments of all government hospitals of the J&K state does not exceed Rs 25 cores whileas the total worth of drug market in our state has been claimed to be more than 1000 crores per annum. By that measure, entire government drug supply constitutes only 2.5% of the total drug market. Given these facts, it is difficult to conclude how 80% of our pharmaceutical trade is dependent on drug supply in govt. hospitals.

Drug policy that govt. is going to implement is not wholly and solely about prescribing and dispensing generic drugs in govt. hospitals but generic drug prescribing is just one of the many clauses of the drug policy. There are almost a dozen more clauses that concern patients at large that deal with adverse drug reaction monitoring of medicines in govt. hospitals, establishing drug information centres, strengthening drug control department and drug testing laboratories, streamlining drug storage and inventory control mechanisms, promoting human resource, research and development in pharma sector and much more. Nobody seems to have any problems with any of these provisions of the drug policy. All controversies and conflicts of interest surround only one clause of the drug policy i.e., generic drug prescribing in govt. hospitals. Therefore it is grossly inappropriate to outrightly reject the entire drug policy just because one particular clause does not suit the interests of a particular section of the pharma trade.

Even the generic drug prescribing is a policy that has not only been advocated by WHO, National Human Rights Commission in 1999 and Supreme Court of India in 2003, 2012 but also by various committees of experts including Hathi Committee (1975), Standing Parliamentary Committee on Petroleum and Chemicals (2001), Mashelkar Committee (2003) and National Commission on Macroeconomics and Health (2005). Worldwide generic drugs comprise 30% of the total drug sales including branded medicines and constitute a market of 80 billion USD. A total of 75% prescriptions in USA and a total of 83% prescriptions in UK contain generic medicines. Therefore when such affluent and rich nations prefer to use generic drugs there is no reason why poor people of India and other developing nations should be force-fed with costly branded medicines. Some people are apprehensive about the quality of generic drugs but that is only a misconception, far from reality since India supplies quality generics to the global market to the tune of 22% and is known as the “Pharmacy of the developing world”. Highest number of USFDA approved generic drug manufacturers outside USA exist in India. India is a world leader in pharmaceutical sector ranking third in value and thirteenth in volume worldwide. Therefore when India can supply quality generics at affordable prices to the entire world why should 50-65% of its population still lack access to essential medicines. Generic prescribing is the remedy to overcome this dismal scenario.

Some people argue that drug markets within India are poorly regulated leading to manufacture of inferior quality drugs in small shacks that mostly find their way into our shops and hospitals. They fear that introduction of generic drugs will further worsen the situation and deteriorate the quality of drugs. However the degree of market regulation is same for generic as well as branded medicines. Therefore quality will also be the same. If low quality generics can sneak into our hospital supplies so can low quality branded medicines. Therefore with existing drug regulatory and quality assurance mechanisms, situation and degree of quality standards are invariably the same for both generic and branded drugs. Moreover in several other states within India where generic drug prescribing has been implemented, savings to the extent of 30-40% have been recorded in their drug budgets, whose benefits gets eventually transmitted to the patients. Tamil Nadu Medical Services Corporation and Rajasthan Medical Services Corporation have provided role models in ensuring quality as well as low price of generic medicines in govt. hospitals. These models have been duly appreciated and recommended not only by the government of India but by WHO too.

Lastly it is pertinent to mention that Govt. of India has formulated a scheme at the central level that envisages to make generic drugs available free of cost for poor patients in govt. hospitals across India. A sum of Rs 1200 crores have been earmarked during the twelfth five year plan for this scheme and the scheme will take off irrespective of whether a state has its own generic drug policy or not. Therefore generic drug policy will anyhow be implemented in the state through the central scheme. Further there is a provision for the review of the state drug policy every five years. Whatever flaws and loopholes are there in the present policy can be rectified during the subsequent review. However for a successful implementation of the policy it shall be incumbent upon the state government to keep generic drugs available within the hospitals throughout the year without leaving scope for any stockouts at any point of time. Any stockouts within the hospital will lead to substitution of prescribed generics with other generic or branded medicines by private pharmacies. Therefore success or failure of this policy entirely depends on the efficiency of procurement mechanism and inventory control. Govt. has to streamline its procurement mechanism as soon as possible on the pattern of TNMSC so that all apprehensions in this regard are addressed well in time. Further it has been observed that majority of the people associated with pharmaceutical trade are still not aware about the nuances of the drug policy. Therefore there is need to generate awareness among common masses and address genuine grievances of all stake-holders simultaneously. Drug policy implementation should not affect the livelihood of any sizeable section of the society on a large scale. However the slogan should be to fully implement the policy rather than not implementing the policy.

(Article is based on the excerpts from a talk delivered by the author during the seminar on State Drug Policy organized by the Chemists and Druggists Association Kashmir on March 24)