The Price of Health

"We did not develop this product for the Indian market, let’s be honest. I mean, you know, we developed this product for Western patients who can afford this product, quite honestly.”

In 2014, Bayer CEO Marijn Dekkers sparked controversy by saying that the company's cancer drug Nexavar was not developed for India's market, but for Western patients who could afford it.

Pretty unreasonable given that India ranks third globally in the number of billionaires. But what prompted him to say this?

This statement came in response to an Indian court's decision to grant a compulsory license to an Indian company, Natco Pharma, allowing it to produce and sell a significantly cheaper generic version of cancer drug Nexavar

What is a generic drug? A medication that has the same active ingredients, strength, dosage form, and route of administration as a brand-name drug sans the exorbitant price.

At the time, the cost of Nexavar  was around $69,000 per year (28 lac rupees) in India, while the generic version produced was priced around $2,124 per year (1.3 lac rupees).

Generic drugs in India, which cost 70-90% less than their branded counterparts, have fuelled the growth of medical tourism in the country, with revenues increasing from $1.8 billion in 2010 to around $5-6 billion in 2019.

While brand-name drugs often come with exorbitant prices, generic versions ensure broader access to life-saving medications, particularly in developing countries like India.

And to be fair, developing these medications cost tons of money, which explains why Marijn Dekker made such a remark.

Like all things in life, a balanced approach is essential—one that addresses both economic and humanitarian needs. The medical industry is the perfect place to begin implementing such an approach.

So, next time you purchase medication, consider asking for a generic version. It might turn out to be more affordable than all the discounts combined.