Nov 22, 2024
India’s pharmaceutical industry, often called the “pharmacy of the world”, is seeing a slowdown in voluntary licensing and technology transfers—mechanisms essential for improving access to medicines in low- and middle-income countries (LMlCs), according to the 2024 Access to Medicine Index. Published biennially by the non-profit Access to Medicine Foundation, the report is supported by the I-JK Foreign, Commonwealth and Development Office and the Dutch Ministry.
India has long been a crucial provider of affordable generics, underpinning global healthcare systems. However, a decline in licensing agreements for patented drugs has raised concerns about healthcare delivery in nations dependent on these arrangements. The index, which evaluates 20 major pharmaceutical companies, highlights a drop in non-exclusive voluntary licensing agreements critical for the generic production of essential medicines.
Voluntary licensing allows pharmaceutical companies to permit other manufacturers to produce patented medicines at lower costs, but the report highlighted a decline in such agreements, potentially restricting access to affordable medicines in poorer nations. Similarly, technology transfers, which involve sharing the knowledge needed for local medicine production, are largely concentrated in wealthier countries, leaving regions like sub-Saharan Africa facing critical medicine shortages.
Despite these challenges, India remains integral to global manufacturing efforts. Five of the 20 pharmaceutical companies assessed have set up production facilities in the country, reducing costs and strengthening supply chains. Additionally, India has participated in 11 of the 47 global technology transfer projects, including end-to-end production capabilities.
Collaborations between Indian and global pharmaceutical firms underscore the potential to address pressing healthcare needs. One such partnership is between Takeda and Biological E. Limited for the production of the dengue vaccine QDENGA@ (TAK-003), aimed at alleviating India’s significant dengue burden.
This initiative targets the manufacture of 50 million doses annually by 2030, addressing India’s disease burden from dengue, which accounts for 59.5 disability-adjusted life years (DALYs) per 100,000 population. Partnerships like this demonstrate the critical role of technology transfers in improving access to medicines and mitigating supply chain risks.
Claudia Martinez, Director of Research at the Access to Medicine Foundation, emphasised the need for more proactive measures. “There are some very clear opportunities for companies to scale up access and promote health equity, but more deliberate action is needed,” said Martinez.
“Developing inclusive business models for low-income countries, engaging in voluntary licensing and technology transfers, and diversifying clinical trial locations are shown to be effective mechanisms for improving access. Real progress will require companies to reassess and adapt their policies to meet access equity goals,” she added.
Source: Business Today