Will China follow India in compulsory licensing of drugs?

Compulsory licensing is emerging as an additional mechanism by which developing countries can make the treatment of non-communicable diseases (NCDs) more affordable to their populace, comments Yanzhong Huang, writing on the blog of the Council on Foreign Relations, an independent think tank with headquarter offices in New York and Washington DC, USA.

Under the World Trade Organization’s Trade-Related Aspects of Intellectual Rights (TRIPS) Agreement, compulsory licensing, which occurs when a government licenses the use of a patented innovation without the consent of the patent title holder, is a legally recognized means to overcome barriers in accessing affordable medicines.

Between 2001 and 2010 24 compulsory licensing episodes in 17 countries were reported. Most of these episodes ended in a price reduction for the specific drug in question through a compulsory license (CL), a voluntary license or a negotiated discount. Also, most of the episodes involved drugs for HIV/AIDS and other communicable diseases, with only five cases involving drugs for NCDs such as cancer. Mr Huang went on to details the Indian patent issues concerning cancer drugs Novartis’ Gleevec (imatinib) and Bayer’s Nexavar (sorafenib; The Pharma Letters passim), noting that the latter could encourage other developing countries such as China to issue compulsory licenses for drugs that treat NCDs.