ORPHANED BY THE POLICY AND BUDGETS: INDIA’S DIRE STATE OF RARE DISEASES AND ORPHAN DRUGS by - Eilin Maria Baiju & Medha RL
ORPHANED BY THE POLICY AND BUDGETS:
INDIA’S DIRE STATE OF RARE DISEASES AND ORPHAN DRUGS
Authored by - Eilin Maria Baiju
& Medha RL
INTRODUCTION
According to National Cancer Institute, an orphan drug is
defined as a drug used to treat, prevent, or diagnose an orphan disease.i World Health Organization defines
rare/orphan disease as a disease
or condition with a prevalence of ?1/1000 population.ii For this very reason,
orphan drugs do not enjoy
adequate support and resources from the market.
But these diseases
are not as rare as one would think. Orphan
diseases are often life-threatening hence treatment is critical, especially when the majority
of the patients are children.
Even though only five percent
(5%) of rare disease is known to have a cure with the right treatment
many patients can have an improved quality of life.iii
India has the highest population who are affected
by rare diseases. Four hundred
and fifty (450)
rare diseases are identified in India so far.iv This is due to the low market
support that the orphan drugs
enjoy which in turn makes the drugs highly expensive. Furthermore, the majority
of these orphan
diseases are chronic
illnesses which makes it more difficult to afford treatment
throughout a person's life. People who live in rural India, who account
for Sixty-five per cent (65%) of
India’s populationv, cannot comprehend being able to afford such
therapy. Even though India has many
rare disease cases, the government's efforts are unproductive and sluggish.
In 2017, Government of India introduced the
National Policy for Treatment of Rare Diseases
(NPTRD). It faced several criticisms and faced several challenges in implementation,
which led to the appointment of an
Expert Committee in 2018. The committee was appointed to review NPTRD, to define rare diseases, to draft National Policy
for Rare Diseases (NPRD), etc. NPRD
essentially aims to lower the cost of treatment for rare/orphan diseases.vi
This new policy also seems to have a lot of limitations. Thus this article
seeks to do an overview
of India's dire need for comprehensive legislation
on rare diseases. Further, it seeks to suggest a better model for boosting access to treatment and medicines for rare
diseases in India. Also in this article, a brief account
of the international perspective regarding orphan drugs and where India
stands in the race has
also been included.
HOW
TO BOOST ACCESS TO ORPHAN DRUGS AND REDUCE THE OCCURRENCE OF
RARE DISEASES IN INDIA?
India is a signatory to the Universal Declaration of
Human rights (UDHR). India has adopted many
of its constitutional provisions keeping in mind human rights. Fundamental
Rights and Directive Principles of State
Policy in the Indian Constitution are greatly influenced by UDHR.vii Moreover, India is a country that has recognized the right to
health and health care through various
judgments. Supreme Court
has reiterated the fact that the right to health
comes under the right to
life, which is a fundamental right under the Indian Constitution.viii
In State of Punjab & Ors v
Mohinder Singh Chawlaix the Supreme Court maintained that the right
to health is inextricably linked to
the right to life and that the government has a constitutional obligation to provide health care. In the
case of Mohd. Ahmed v UOIx, Delhi High court had observed that the state had a
constitutional obligation to ensure access to life-saving drugs. Thus
access to orphan drugs is also to be considered as a facet under Article 21 of
the Constitution i.e., Right to Life.
First of all the citizens should be made
aware of orphan diseases. Very few populations are aware of these life-threatening diseases. Conditions such as
cystic fibrosis were thought to be very rare in India
however, a genetic
study has revealed
that the condition is widespread, but it was previously undiagnosed.xi There is also a social stigma associated
with these diseases. People do not
reveal the fact that the disease runs in the family since it becomes a hurdle
in their prospective marriage lives. Medical practitioners lack practical awareness
of such diseases since some people shy away from receiving treatments.
In India, there is a lack of research and development in
the area of orphan diseases. This is again
attributed to the fact that these diseases are “rare”. Orphan diseases are very
difficult to research since the
number of patients is very few. There is very little known regarding the pathophysiology and natural history of
these diseases. Thus, the physicians must collaborate with other regional and international researchers who work on
the very same topic.xii This increases the scope of research and widens the sample of patients. However
for the same to be possible
the government should be willing to provide special grants for researchers who
work on orphan diseases and drugs.
Like any other drug manufacturing and development, orphan
drugs development is also very expensive.
Indian Pharmaceutical companies shy away from investing time and resources in developing orphan drugs. This is mainly
due to the fact that the return profit is less compared to any other drugs since orphan diseases are rare comparatively.
So the government should be ready
to incentivize the manufacturing of orphan drugs. There should be a separate
budget allocation for the same.
Subsidies should be given to major Indian Pharmaceutical companies like
how United States
Food and Drug Administration (USFDA)xiii, Japan,
etc. provides to their indigenous pharmaceutical companies.
Only by providing tax incentives and giving exclusive marketing rights and patent protection, the Indian government
can encourage indigenous production
of orphan drugs. However, the Government of India has not shown keenness in providing any incentives to any of the
pharmaceutical companies for manufacturing orphan drugs. No Indian Pharmaceutical company manufactures orphan
drugs. Thus people in India who are affected by these diseases
rely on other developed countries
(such as the United States
of America, United Kingdom, Japan, et cetera) for orphan drugs. This
makes the drugs very expensive and inaccessible.
One method to attract Indian Pharmaceutical
companies to start manufacturing orphan drugs
would be to give marketing
exclusivity or patent to the companies over orphan drugs.
Marketing exclusivity and patent also can run concurrently. Patent is a
facet of Intellectual Property Rights
(IPR) which is given early while developing the drug. However, marketing exclusivity is granted only when the drug
is approved by the Food and Drug Administration (FDA) and all statutory legislations are met.xiv
Patent and marketing exclusivity is generally
granted to lessen drug competition. Under the Orphan Drug Act of United
States of America, seven-year market
exclusivity is granted to orphan drugs.xv In European Union, orphan
drugs enjoy ten years of marketing
exclusivity.xvi A research
conducted in different countries on a particular
drug which was given patent rights in those countries shows that giving patents
and marketing exclusivity increases
investments made by pharmaceutical companies on orphan drugs.xvii It also shows that patient treated
by orphan drugs increased when patent and marketing
exclusive rights were given.xviii This is due to the fact that the
company was able to earn more profits
when patents and marketing exclusivity was given. Patents
help manufactures to secure market position, protect
their research and development.xix Thus patents and marketing exclusivity will attract manufacturers.
The government should be willing
to reimburse the victims of orphan disease
for the treatment. There should
be a proper government-authorized insurance policy that covers
all groups of rare diseases.xx Without
the existence of a proper mechanism of insurance policies,
a common man would
not be able to afford such expensive drugs. United States of America, Italy,
France, et cetera. have policies to
reimburse for the orphan drugs approved by the government through their legislation.xxi In some
countries, considerations such as equity access and the rule of rescue are followed. Rule of rescue
essentially means value of rescuing a life regardless of cost.xxii
Another option in front of the government is
to execute government-based crowdfunding and
this should be tax-free, transparent, and timely. Many children
die every day just because crowdfunding is not being
done in time.xxiii Crowdfunding should
also have government control as observed
by Kerala High Court.xxiv But a mechanism solely based on
crowdfunding would not work. The
Government of India has recently launched a portal for crowdfunding for rare diseases.
However, this is not tax-exempt.xxv This defeats the whole purpose
of crowdfunding. Group
3 patients of orphan disease
are completely left at the mercy of crowdfunding under the National Policy for Rare Diseases,
2021.xxvi This is another blunder on the part of the Indian government.
Any initiative taken on orphan drugs could only be executed with proper legislation backing it. India needs legislation that clearly
lays out how to incentivize the manufacturing of orphan drugs indigenously, how to reimburse the patients for orphan
drugs. A proper direction has to be
provided in the legislation as to how to increase research and development on
the same subject. We have seen how legislation has brought immense
development in the area of orphan drugs
in the United States of America, European
Union, France, etc. Similarly, India also needs
comprehensive legislation without which it would be impossible for a
common man living in India who is affected with an orphan disease to get proper treatment.
INTERNATIONAL PERSPECTIVE ON ORPHAN DRUGS
As
previously stated, rare diseases can include infectious diseases, genetic
disorders and various types of
cancers. Although there are more than
500 orphan drugs available and approved by various regulatory bodies, most of them remain
ineffective for treatment purposes. With hundreds
of new treatments entering the market over the last few years,
it has further propelled the need for capital
intensive research and development of the drugs, further encouraging the companies to invest further in such developments.
The US made a path-breaking law on orphan drugs, under the name the
Orphan Drugs Act, 1983 under the
regime of President Reagan and managed to successfully tackle the profit motive of the drug industry
to the needs of the patient. With this legislation US was successful in approving approximately 10 drugs per year and more than 250 drugs have been approved so far
with an intention to treat more than 2,00,000 people in the United States of
America.xxvii It is expected
that the orphan drug market alone will cross USD
350 billion by 2028.xxviii
Whereas in Europe, orphan drugs are all medical products the
pharmaceutical industry would be
unwilling to develop under the normal market conditions and is a condition that
affects not more than 5 people in 10000 citizens. It is the European Medical
Agency (EMA) and Committee
on Orphan Medical Products that play central role in facilitating the
development and authorization of medicines for xxixrare diseasesxxx In addition EU also established the Rare Disease Task Force in 2004 with European
Commission Public Health Directorate to provide evidence to support
the orphan drugs cause.xxxi Australia
also has a similar appropriate threshold for orphan drugs under its 1997 legislation.xxxii
Meanwhile Japan categorize Orphan Disease
in the 1993 legislation as a condition that impacts less than 50,000 citizens
(which is less than 3.9 per 10,000
individuals), coupled with the absence
of adequate treatment and shows the development and needs for a new
drug.xxxiii In recent years countries like South Korea and Taiwan have made considerable progress
in legislation. In fact, China is also actively making new regulations for orphan drugs.xxxiv The Taiwan
government has identified more than 160 rare
diseases and developed 77 orphan drugs and 40 special nutrients for the treatment
of rare diseases. The Taiwan Centre
for Rare Disorders was established in 1999 with the motive to help patients Meanwhile South Korea legislated its orphan drugs Guidelines back in year 2003 and identified it rare disease that
affects fewer than 20,000 people and stipulated exclusive marketing rights for 6 years to encourage medical research and development
of orphan drugs.xxxv In addition
it also established the Korean
Rare Disease Information Database as well
as Korean Organization for Rare Diseases
to provide vast information on companies, researchers and patients.xxxvi
Meanwhile China does not have any clearly defined legislation till now, but it has its own networks like
Rare Disease in China Network and Chinese Rare
Disease Academic Network. Similarly, Argentina, Egypt, Brazil and
Algeria had a robust mechanism for
reimbursement and allocation of funds from the healthcare budget for rare disease-related matters.
WHERE INDIA STANDS IN THE RACE
Despite
severe child mortality associated with rare diseases, India’s ambitious
Ayushman Bharat does not have any
provision to integrate the draft policy and effectively implement it. Meanwhile, the 2021 Budget as well as the
2022 budget shunned the orphan drugs blatantly
and made no allocation for such plans despite one-fifth of its
population suffering from it.xxxvii
The existing National Policy for Rare Disease, embraces a very
minimalist approach and maintains the
position that it is a state matter. To add on, the policy also backed a
parallel mechanism of the Indian
Council for Medical Research formulation of the National Registry. Though the registry was implemented in
2017, it is yet to start nationwide data collection so that patients benefit from it. So in toto, the orphan drugs
access were further orphaned by the draft policy
and further caged by the National Registry.
This coupled with our country’s
rustic health care creates
unavailability of testing, prolonged diagnosis, limited access to specialists further
worsens the misery.
Though in general
cases, early diagnosis
can improve possibilities of survival and open doors to life-saving therapy, there is no ray of hope for Indian rare disease
patients. The papers of draft policy are also silent on the inclusion of
patients in International clinical trials.
Under the draft policy the government has categorized patients
into three groups.
The first group comprises of people who would benefit from one-time
curative treatment and the second
group consists of people who need life-long treatment. Whereas the third group
is concerned with people who would require
long term life-saving treatment where the cost of the treatment is highly unaffordable and the
treatment of patients in this category is relatively uncertain as per the draft.xxxviii For the first
category patients, the central government will
provide an assistance of Rs.20 lakhs through its schemes, Pradhan
Mantri Aarogya Yojana
and Rashtriya Aarogya
Nidhi, provided that the patient
belongs to the bottom 40% of the economy. The treatment involved is generally
one-time curative treatment. For the second category patients, it is suggested that the states
could consider patients
falling under this category. There
is no element of clarity in this categorization. The most problematic
categorization happened with the
third, which shook the rare diseases community, where the government has
provided a straight jacket solution
and resorted to digital crowdfunding platform because of “resource constraints”. Practically analysing, the government diplomatically requested the third category to beg for donations for their treatment
and receive donations. It is important to note here that crowd funding was always an option since the beginning
and when the government doors shut, families resorted to it. The draft policy didn’t make any improvement to the present
situation of Group 3 patients and hence the new government portal has no
effect or null in improving the existing circumstances.
In addition, there is no law in India or provision in the draft policy
exempting the drugs that are used to
treat rare genetic diseases from ‘price control’. This aspect is very important considering the nature of the drug market
is oligopolistic and often there is a tendency to jack up the price of orphan drugs. For example, there was a global
outrage when the price of Daraprim,
the life-saving drug that treats the liver that does not produce bile acids,
were shot up from $13.50 per pill to $750 per pill.xxxix To worsen it further, this hike of 5000% was further approved
by the US Food and Drug
Administration.xl
PRECEDENTIAL FRAMEWORK OF INDIA
ON RARE DISEASE
As per data available, almost 300 million
people are suffering
from rare diseases
and with more than
7000 rare diseases out of which 450 have been found in Indians.xli
With the help of the draft policy the
Indian Government has made an allocation of Rs.20 lakh through its umbrella scheme
of Rashtriya Arogya
Nidhi.xlii Recently in the case of Master
Arnesh Shaw v. Union of India
and Anr.,xliii Justice Pratiba M Singh directed the Centre to
finalize the National Policy for Rare
Disease as the revised policy raised questions on matters relating to sharing
of expenditure and cost-effectiveness between
the centre and the state. The judgement
also stated that the draft policy has not seen the
light of the day despite being introduced for consultation in 2020xliv and further stated
that the treatment of children with rare diseases
is a fundamental right
under the ambit of Article 21 as “Right to Health and Health Care”. The bench
also observed that the Centre cannot
wipe their hands clean in matters involving rare diseases and contend
that they cannot be made a party to the proceeding.
The Delhi High Court constituted the Renu Swarup Committee expert
committee on 12th March 2021, which
requested the Union of India to specify its budget of health in the preceding 5 years and also show details of the amount
unused so that the same can be contributed to the treatment of rare disease and indigenous development of therapies for treatment. The committee also suggested the constitution of National Consortium for Research and Development on therapeutics for rare diseases
further effectuated by the draft
policy in papers.
The committee also suggested the formation of the National Expert
Committee on Rare Diseases to
evaluate the progress of research and provide advice on matters pertaining to orphan
drugs and rare diseases.
One interesting observation, in this case, was the submission of accounts details
of the Ministry of Health
and Family Welfare. The affidavit showed that Rs.200 crores were allocated for
the purpose of the expenditure in
respect of rare disease, out of which the total expenditure was merely Rs.7 crores over the last three
years.xlv This showcased the failed mechanism of fund allocation for thousands of children and the parents
out there seeking
help for treatment.
Recently, in the case of Arif v. State of Kerala and Orsxlvi,
the bench headed by Justice P.B Suresh Kumar directed the Centre and State to disseminate guidelines to overview the crowdfunding
scheme. The court commented that “every Tom and Harry out there might be collecting funds with ill-motive via
crowdfunding and the amount might be getting deposited in private accounts.” The court noted that the amount raised
often is so huge amounting in crores, that is enough
to stifle the economy if not properly regulated by the government.
CONCLUSION
There exists no denial in the fact that rare diseases and
orphan drugs are a mammoth human issue faced by thousands of children and other people.
As rightly pointed
out by the rare disease
community, the present draft is a mockery that lacks foresight and is
utterly thoughtless to the needs of the community. India has a long journey
to trek to console the woes of its rare disease community. As previously stated, the
price of the drugs involved for treatment is extremely exorbitant making it important to incentivize the research trials
and further delve
for sustainable options. Advanced Prenatal scanning
is one way through which rare disease
occurrence can be curbed. But these tests are ritzy and requires
high expertise. The government should
take active steps in establishing the Centre for
Excellence (CoE) in every state to enhance research and training. The government should also consider alternatives like
indigenous research and try to produce low-cost substitutable drugs and therapies for its population.
The government should work towards
the actual establishment of the National Consortium for Research and Development on therapeutics for Rare Diseases
and the National Expert Committee
on Rare Diseases. The government should
make sure that the treatment and funding are streamlined in such a way, that patients should
not be unnecessarily dragged into the realms
of litigation to get some relief from the government. The assistance
should reach the needy on time. It
is also important that the government sees the allocated funds for rare
diseases reach the correct hands-on
time and the budget is effectively utilized. As stated by the Kerala High Court it is also very important that there
is a government overview in crowdfunding for these treatments and to remove the corruption involved,
if there is any. The groundbreaking
Technology of CRISPR Cas9 (Clustered Regularly Interspaced Short Palindromic
Repeats) used for genome editing
is raising new hopes for the rare disease community. The government should try employing this technology
within the specified ethical means to help rare disease patients.
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xl Andrew Pollack, Drug goes from$ 13.50 a tablet to $ 750,
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xliv Master Arnesh Shaw v. Union of India and Anr., WP (C) 5315/2020.
xlv Ibid at ¶ 18.
xlvi Arif v. State of Kerala and Ors., W.P(C)
No.7984/2021.