Two years ago, British drug-maker GlaxoSmithKline's Chief Executive Mr Andrew Witty had told an Indian audience in Nashik, the company would pursue “customised pricing” of its medicines in middle and low-income countries.
In India, the strategy has rolled out “as per plan”, says Dr Hasit Joshipura, GSK Pharma's Managing Director (India), referring to the differential pricing of Synflorix, a 10-in-one vaccine targeting invasive pneumococcal disease, renal cancer drug Votrient, and Revolade, treating reduce blood platelet count.
The oncology drugs, (Votrient and Revolade) and Synflorix (introduced last year), were launched about 25-30 per cent of the product price in the developed markets. The price, relevant to the Indian market, enables greater affordability to patients, said company officials.
The strategy, though, may not extend to products brought in through alliances, Dr Joshipura said. GSK has the marketing right for Amgen's Xgeva, targeting the spread of cancer to the bone. It has filed its registration with the regulatory Drug Controller General of India to market here, he added.
Differential pricing
Globally, drug-companies are under pressure to keep prices affordable, as Governments grapple with the cost of delivering healthcare to its people.
In Least Developed Countries, GSK capped price on patent-protected medicines at 25 per cent of price in the UK. In middle-income countries, a flexible pricing approach had to be adopted as countries were diverse in economic status, demography and healthcare reimbursements.
Turkey, for instance, had a fully-reimbursed universal healthcare system, Brazil was a “mixed” system where public provision was limited and private healthcare the norm, and in India - patients fully funded their treatment.
Alliances
GSK India grew through a combination of selling its own products, in-licensed products from other drug companies, vaccines and select branded generics drugs. Alliances contribute about 1.5 percent of the company's revenues of Rs 2,400-odd crore, Dr Joshipura said.
GSK has alliances with Daiichi-Sankyo on hypertensive Olmesartan Medoxomil, and Astellas on anti-fungal drug Micafungin. Vaccine sales at about Rs 200 crore (11 per cent of sales) are projected to increase to 18 per cent by 2015. The company has also commenced six new clinical trials in oncology and anti-infectives. Last year saw a similar count on trials.