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How India-South Africa is taking on Big Pharma at WTO

India and South Africa have the backing of a large number developing nations, in their demand for an eight-month temporary waiver of intellectual property (IP) rights on vaccines and medicines to treat Covid-19, reports SPS Pannu

The India-South Africa proposal which takes on Big Pharma in seeking a temporary patent waiver for the manufacture of vaccines and medicines to fight the Covid-19 pandemic has made some headway in those advanced countries, opposed to the move, have agreed to discuss the issue next week at the Geneva-based WTO.

World Trade Organisation (WTO) members agreed to begin discussions on June 17 to determine the format of negotiations and to produce a report outlining their progress on the vaccine supply plan by July 21-22, when the WTO’s general council convenes, Reuters cited a Geneva trade official as saying.

In India, Commerce Secretary Anup Wadhawan said that India and South Africa’s proposal has achieved tremendous mileage and tremendous progression at a very fast pace,” the news agency Press Trust of India (PTI) is reporting.

Wadhawan added that WTO member countries have agreed to commence text-based negotiations on the India-South Africa draft.

While the move has gained strength with the Joe Biden administration also coming out in favour of a temporary patent waiver for Covid-19 vaccines, European countries such as Germany, UK and France, home to big pharmaceutical giants, have been opposing the move.

However, these countries have come under increasing moral pressure to take a humanistic line to tackle the Covid-19 catastrophe confronting the world instead of backing their pharma giants in the pursuit of profit when the death toll in the deadly coronavirus pandemic has already crossed a staggering 376 million worldwide.

The issue was discussed at a recent G-7 meeting of the advanced countries and they veered around to the view that more companies worldwide should be given the technology to manufacture Covid-19 vaccines under a “special license.” While this may appear as a half-way house, considering the more far-reaching India-Africa proposal, it represents a significant step forward, a senior Indian government official told India Narrative.

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The European Union, supported by the UK, Switzerland and South Korea have now taken the stand that existing WTO rules allow countries to grant licences to manufacturers even without the patent-holder’s consent. This is expected to pave the way for wider production of vaccines. But if this is to happen on a war-footing as required much would depend on how far Big Pharma is willing to go to help and part with their technology on vaccines, experts point out.

India and South Africa have the backing of a large number developing nations, in their demand for an eight-month temporary waiver of intellectual property (IP) rights on vaccines and medicines to treat Covid-19. The fact that less than 1 per cent of the population in most developing countries is yet to be vaccinated only highlights the desperate need for big corporates to let go of patents and allow other companies round the globe to manufacture the vaccines. The WHO has also emphasised this aspect and made it clear that war against the pandemic cannot be won unless vaccines and medicines reach the poor countries as well. Developed nations have been arguing that a waiver would not boost production and could undermine future R&D on vaccines and medicines which is the standard rationale for patent waiver in normal times. However, the argument falls flat at a time when humankind is facing a devastating wave of death and suffering triggered by the coronavirus pandemic.

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The India-South Africa proposal is broader and includes, apart from vaccines also diagnostics, therapeutics and medical devices used to treat Covid-19 patients in the patent waiver.

The United States has taken the stand that WTO members should focus on what actions might be needed to ramp up vaccine supply and on areas most likely to be accepted by others as soon as possible.

All decisions at the164-member WTO are taken by consensus and have to be agreed upon by all the member countries before approval which makes the task that much more difficult.

However, the India-South Africa proposal has set the ball rolling in the right direction and brought to the forefront the importance of a combined global effort to save humankind from the devastating coronavirus that has jumped species to wreak havoc on an unprecedented scale worldwide.

(This content is being carried under an arrangement with indianarrative.com)

ALSO READ: ‘India’s pharma sector sees huge growth in May’

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‘India’s pharma sector sees huge growth in May’

The ratings agency opined that the 47.8 per cent YoY growth in India’s pharmaceutical market (IPM) during May 2021 was led by a low base effect….reports Asian Lite News

Low base effect accelerated the growth of India’s pharma sector in May, India Ratings and Research (Ind-Ra) said.

The ratings agency opined that the 47.8 per cent YoY growth in India’s pharmaceutical market (IPM) during May 2021 was led by a low base effect.

Last year, the IPM declined by 8.5 per cent YoY in May 2020 due to the lockdown.

“IPM growth would have been stronger on an adjusted basis,” Ind-Ra said in a statement.

“Acute therapies namely anti-infective, analgesics and vitamins benefited significantly due to the second Covid wave as these therapies have a direct/indirect role in the treatment of Covid patients. Acute therapy growth was also aided by the low base in May 2020.”

As per the report, during May 2021, volumes grew 31.5 per cent YoY, price growth was 7 per cent and products launches were at 9.3 per cent, attributed to acute therapy products.

“Ind-Ra estimates the market to grow 8-10 per cent YoY in size during FY22.”

Besides, it cited that acute therapies such as anti-infectives, analgesic and vitamins witnessed sales growth of 141.19 per cent YoY, 50.3 per cent YoY and 59.8 per cent YoY respectively, while gastro grew 47.7 per cent YoY during May 2021.

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“Growth under-performance was observed in chronic therapies during the month, with cardiac and anti-diabetic growing 31 per cent YoY and 20.2 per cent YoY, respectively.”

“However, on a moving average total (MAT) May 2021 basis, a growth out-performance was observed across these therapies.”

Meanwhile, Amid calls for lower levies on items and medicines required in Covid-19 treatment, the GST Council on Saturday decided to slash rates of several Covid-relief items to 5 per cent from existing 12-18 per cent levels, although it kept the much talked-about tax rate on vaccines unchanged at 5 per cent.

Addressing the media post the GST Council meet, Finance Minister Nirmala Sitharaman said that the council agreed to go with the recommendations of the Group of Ministers (GoM) that was single point agenda on the council on Saturday.

She said that while rate of tax on various Covid relief medical items has been reduced, no change had been made in 5 per cent GST rate on vaccines but it would not impact the public as vaccination is being provided for free.

Sitharaman said that Centre will be paying and receiving 75 per cent of all the tax collected on it, which will be further distributed with states.

She had earlier said that exempting vaccines from GST would deny input tax credit on raw material and supplies that could impact its pricing.

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