Subject category:
Strategy and General Management
Published by:
IBS Case Development Center
Length: 11 pages
Data source: Published sources
Topics:
Chemical Industrial and Pharmaceutical Laboratories; CIPLA; Generic drugs and patented drugs; Medecins Sans Frontieres; World Health Organisation; World Trade Organisation (WTO); Yusuf Hamied; Indian Patents Act 1970; General Agreement on Trade and Tariffs (GATT); Abbreviated new drug application; Zidovudine; Product patents and process patents; Doctors Without Borders; Pharmaceutical value chain; European Commission
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https://casecent.re/p/19634
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Abstract
Thanks to the Indian Patents Act 1970, Indian pharmaceutical companies became adept at reverse engineering. Minimal expenditure on R&D, low labour costs and low input costs due to availability of cheap indigenous raw materials contributed to lower production costs. These factors contributed to the Indian pharma industry becoming ''generics'' driven. The growing problem of AIDS across the world, especially in poor countries in Africa, called for an urgent need of producing affordable drugs to combat the disease. Chemical Industrial and Pharmaceutical Laboratories, the third largest pharmaceutical company of India and one of the leading generics producers, offered to supply certain AIDS drugs to these countries, at about a tenth of the price offered by multinationals. This move by CIPLA sent the big pharma players across the world scurrying to lower their prices and to stop generic versions of their drugs being sold.
About
Abstract
Thanks to the Indian Patents Act 1970, Indian pharmaceutical companies became adept at reverse engineering. Minimal expenditure on R&D, low labour costs and low input costs due to availability of cheap indigenous raw materials contributed to lower production costs. These factors contributed to the Indian pharma industry becoming ''generics'' driven. The growing problem of AIDS across the world, especially in poor countries in Africa, called for an urgent need of producing affordable drugs to combat the disease. Chemical Industrial and Pharmaceutical Laboratories, the third largest pharmaceutical company of India and one of the leading generics producers, offered to supply certain AIDS drugs to these countries, at about a tenth of the price offered by multinationals. This move by CIPLA sent the big pharma players across the world scurrying to lower their prices and to stop generic versions of their drugs being sold.