A careful reading of the past can open the doors to a better future. The German Chancellor Ms. Angela Merkel is on an India tour and is pushing forth for the EU – India Trade Agreement also known as Broad based Trade and Investment Agreement (BITA). The talks for BITA have been on the cards since 2007 but there has been no conclusive agreement that has been signed between EU and India. Earlier this year, the Indian government had cancelled on the BITA due to a ban imposed on 700 (almost) Indian generics by the EU based on the recommendation of European Medication Agency (EMA)[1].
In January 2015, the EMA had issued its recommendation to impose a ban on certain generic drugs being imported from India; a re-examination of the bio-equivalence testing was conducted after the request of marketing authorities of some of the medicines being banned. The result of the re-examination also concluded that there had been certain data manipulation with regard to the generics, for instance, the Electrocardiogram (ECG) had revealed certain manipulation according to the report submitted by French Medicines Agency (ANSM). It was stated that due to the anomalies of the clinical studies made available, on the generics (by Indian companies), a ban was recommended. It was categorically stated that there was no harm or lack of effectiveness reported in these drugs and the same could be made available in certain countries where there was a requirement of patients in that country. The importance of a bio-equivalence testing cannot be ignored; it is the usual practice to examine the quality of the generic drugs being imported in to a country. It is an essential requirement for a country to examine the drugs to ensure that quality drugs are made available to the citizens, a high level of precaution is observed in case of drugs because a minor miscalculation could turn out to as life threatening. While the EU was acting according to its usual policy of examining the drugs, the ban did not go down very well with the Indian government and it called off the trade negotiations in August. The officials of the generic drugs stated that their clinical practices confirmed with the FDA requirements (USA) when it had been examined; this claim was later supported by the FDA as well[2]. However, it is possible that each country/region sets up its own procedure to determine good clinical trial before approving the generics. A red flag can be raised only when there has been any evidence of discrimination between generics of one country and other as the same would be a violation of Most Favored Nation clause in the WTO.
It has been estimated that this ban could cost India a loss of $1-1.2 billion worth of drug exports[3], in the year 2014-15 the net worth of drugs export from India to EU was said to be close to $3 billion and the generics itself accounted for $1 billion[4]. The suspension of these generics for a period of two years will be a great loss of revenue for the Indian government and hence, a major cause of concern and discussion between EU and India. The German Chancellor is now hoping that there can be an amicable solution to this concern raised by India while the generic industry in India is hoping that the Indian government sticks to the stance of defending them. The issue at hand is a dicey one as one cannot exactly condemn the EU’s practice of requiring good clinical trial, it will be interesting to see how the same gets resorted.
It is important for the Indian government to act now since, a lot of regional pacts are in midst of or already have been drawn up, for instance, the Transatlantic Trade and Investment Partnership (between the EU and U.S.), and the Trans Pacific Partnership (between 12 countries). In the wake of these developments it is imminent that the Indian government enters into an agreement with the EU without much delay since it is one the largest trading partners for the country[5]. It is of course, necessary that there should be no hasty decisions made that would compromise with the generic industry prevailing in India (the prevalence of generics ensure that certain drugs are affordable to an average Indian.) In the coming few days it will be apparent whether the issues raised in the past between EU and India will be resolved in an amicable fashion. I will update this space very soon!
Footnotes:
[1] Ema.europa.eu, (2015). European Medicines Agency – News and Events – GVK Biosciences: European Medicines Agency confirms recommendation to suspend medicines over flawed studies. [online] Available at: http://www.ema.europa.eu/ema/index.jsp?curl=pages/news_and_events/news/2015/05/news_detail_002338.jsp&mid=WC0b01ac058004d5c1 [Accessed 6 Oct. 2015].
[2] Silverman, E. (2015). European Union Bans Hundreds of Drugs Over Clinical Trial Studies. [online] WSJ. Available at: http://blogs.wsj.com/pharmalot/2015/07/27/european-union-upholds-ema-recommendation-to-ban-hundreds-of-drugs/ [Accessed 6 Oct. 2015].
[3] Vijayakumar, S. (2015). Ban on Indian drugs based on scientific reasons: EU. [online] The Hindu. Available at: http://www.thehindu.com/business/ban-on-indian-drugs-based-on-scientific-reasons-eu/article7508551.ece [Accessed 6 Oct. 2015].
[4] Krishnan, V. (2015). India cancels trade talks after Europe bans 700 generic drugs. [online] The BMJ. Available at: http://www.bmj.com/content/351/bmj.h4387 [Accessed 6 Oct. 2015].
[5] Sasi, A. (2015), India –EU Trade Pact: Antibiotic for Common Cold. [online] The Indian Express, Available at: http://indianexpress.com/article/india/india-others/india-eu-trade-pact-antibiotic-for-common-cold/ [Accessed 6 Oct. 2015].