How Three Asian Nations are Beating Outrageous Price-Gouging by American Pharmas

by Nomad

Some have started to question the exorbitant prices pharmaceutical companies charge the public. In Asia, we may be seeing a push back against what some see as price-gouging of the most desperate and vulnerable segment of the world's population: The sick and the poor.

In the recent past, Nomadic Politics examined, in two posts, alleged price-gouging for one company's drug for Hepatitis C. There are further developments to that story. First, let's re-cap.

The Breakthrough

The story begins with some very good news. It was reported last year that one orally-administered drug,  Sovaldi (sofosbuvir), has proved to be a breakthrough for the treatment of a silent killer virus, hepatitis C.  

From the clinical trial reports, researchers claimed that Sovaldi was not a life-long treatment but a genuine cure for the deadly disease itself. The therapy required a 12-week therapy but at the end, most of the patients would be free of the disease.  

Then came the bad news: Gilead Sciences, the patent-owner and developer of the drug, was definitely not a charity organization. It was a profit-making company which, according to Wikipedia, earned US $12.059 billion in 2014. 

It was immediately clear to everybody that the Hep C cure was not going to be given away free. Few, however, were expecting the price the company settled on. Sovaldi costs $1,000 a day, adding up to staggering $84,000 for a 12-week supply. 

The problem is obvious: at that price, a cure is out of reach of most patients in the world and even in rich countries.

Drug Patent Extortion: Indian Court Defeats Corporate Greed in Hepatitis C Cure

by Nomad

An Indian court has thrown a monkey wrench in an American pharma's plan to reap exorbitant profits from its Hepatitis cure.

Last year, we reported about a breakthrough in the treatment of one from of Hepatitis C.

This orally-administered drug, Sovaldi (sofosbuvir), was, from the clinical trial reports, not a life-long treatment, like HIV drugs but a genuine cure for the disease itself. The therapy required a 12-week therapy but at the end, the patient would be free of the disease.

In 2012, when Bristol-Myers Squibb (BMS) announced the final trial results conducted with Gilead Sciences for the treatment of hepatitis C (HCV), the news seemed too good to be true. A 100% cure rate within 12 weeks. The possible side effects, such as, headache, fatigue, and nausea, were minor compared to other treatment drugs.
All good news? A victory for modern medical science, right?
Not quite.

According to a press release by Médecins Sans Frontières

The oral drug, which first received regulatory approval in the US in November 2013, and has been priced by Gilead at US$84,000 for a treatment course, or $1,000 per pill in the US, has caused a worldwide debate on the pricing of patented medicines. A study from Liverpool University showed that sofosbuvir could be produced for as little as $101 for a three-month treatment course.

Although the corporate decision was widely criticized at the time, the pharma companies seemed determined to put the profit margin at the top of its priority. Some say that decision was indefensible.

Challenge in Indian Court

According to one report, this example of what some see as corporate extortion has been challenged in Indian courts.  The Indian authorities have taken a strict approach to granting pharma exclusive patents in favor of generic production.  In a recent patent decision, the Patent Office Controller of India rejected the patent application by Gilead on the grounds- admittedly weak- that the drug was not unique.