The world's pharmacy has a challenge — shifting from volume to value, Pg15

Key Highlights:

• India's pharmaceutical industry produces 60% of the world's medicines, saving patients over $2 trillion in the last decade.
• The Patents Act of 1970 and the Hatch-Waxman Act of 1984 were crucial in promoting affordability and availability of medicines.
• Generic drugs now constitute 90% of dispensed prescriptions in America, significantly reducing drug prices.
• India aims to achieve $350 billion in pharmaceutical exports by 2047.

Detailed Insights:

• The Indian Patents Act of 1970 replaced product patents with process patents for 35 years to encourage domestic production.
• The Hatch-Waxman Act of 1984 in the US streamlined generic drug approval, fostering competition and lowering prices.
• India's pharmaceutical industry faces challenges in transitioning from volume-based production to value-based sales.
• To enhance its global position, India needs to invest in science, reduce regulatory burdens, and foster university research.
• China's success in pharmaceuticals and other sectors stems from strong collaboration between education, policymakers, and entrepreneurs.
• India's geopolitical and military power is linked to its economic and technological strength in sectors like pharmaceuticals.

Key Concepts Involved:

• Process Patent: A patent on a method of manufacturing a product, rather than the product itself.
• Generic Drug: A medication produced and distributed without patent protection.
• Hatch-Waxman Act: US legislation that incentivizes generic drug production by streamlining the approval process.