The $7-billion Japanese pharmaceutical company Eisai, which set up operations in India nearly eight years ago, is extending its affordable pricing strategy by introducing a criticalbreast cancer drug through a tiered model. The exorbitantly-priced drug Halaven, which costs around Rs 4.8 lakh per four cycles, prescribed as a third-line treatment for metastatic breast cancer, will be offered to those from lower socio-economic classes free of cost. This is in addition to the two other medicines already sold under the affordable pricing strategy at one-tenth of the global price, says the company's Asia deputy president Yuji Matsue.
Innovative drugs, anti-Alzheimer's drug Aricep and gastro-intestinal drug Parit, are already sold under an affordable pricing strategy here.
Eisai joins other drug biggies like GSK and Sanofi, which have advocated a differential pricing model that includes offering exorbitantly-priced life-saving medicines at a fraction of the cost in developing countries like India. A major challenge for drug companies in India is reaching out to patients
who need critical healthcare and making treatment costs affordable.
Japan's fifth-largest drug company plans to focus on its two major pillars — treatment for central nervous treatment (CNS) and oncology in India, and has taken the organic route for growth, which is in line with its traditional philosophy, said Matsue.
Under the tiered-pricing model, the cost burden to patients is differentiated according to their income level, ranging from full payment by the patient to total reimbursement by the company.
The prevalence of breast cancer in India is estimated to be around 3.4 lakh cases, while the mortality rate in breast cancer is very high, as few patients are diagnosed and treated.
It has recently introduced a higher dose, 23 mg, of its blockbuster drug Aricep for anti-Alzheimer's treatment, which is available at one-tenth of the global price here, Eisai Pharma India MD K Shivkumar said.
In fact, Aricept (brand name in US) with sales of $3 billion, lost patent protection in 2010, while Eisai's largest selling drug globally now is Parit (Rabeprazole) with sales of around $1.1 billion.
Eisai's presence in India goes back to 1999 when it out-licensed a key neuropathy drug, Methycobal, to Wockhardt and followed it up with an alliance with GlaxoSmithKline for its gastro-intestinal blockbuster Parit. It also has a tie-up with Unichem for a muscle-relaxant pain reliever. These agreements will continue to be in place, Matsue said.
The Japanese company plans to appoint a field force of 15 specifically to promote the life-saving cancer drug to cover about 400-odd oncologists across the country.
The company, which has been growing at a strong double-digit clip, expects a jump in profit for the fiscal year 2015, he said.
Source: http://timesofindia.indiatimes.com/business/india-business/Japanese-company-prices-breast-cancer-drug-in-tiers/articleshow/25285951.cms
Innovative drugs, anti-Alzheimer's drug Aricep and gastro-intestinal drug Parit, are already sold under an affordable pricing strategy here.
Eisai joins other drug biggies like GSK and Sanofi, which have advocated a differential pricing model that includes offering exorbitantly-priced life-saving medicines at a fraction of the cost in developing countries like India. A major challenge for drug companies in India is reaching out to patients
who need critical healthcare and making treatment costs affordable.
Japan's fifth-largest drug company plans to focus on its two major pillars — treatment for central nervous treatment (CNS) and oncology in India, and has taken the organic route for growth, which is in line with its traditional philosophy, said Matsue.
Under the tiered-pricing model, the cost burden to patients is differentiated according to their income level, ranging from full payment by the patient to total reimbursement by the company.
The prevalence of breast cancer in India is estimated to be around 3.4 lakh cases, while the mortality rate in breast cancer is very high, as few patients are diagnosed and treated.
It has recently introduced a higher dose, 23 mg, of its blockbuster drug Aricep for anti-Alzheimer's treatment, which is available at one-tenth of the global price here, Eisai Pharma India MD K Shivkumar said.
In fact, Aricept (brand name in US) with sales of $3 billion, lost patent protection in 2010, while Eisai's largest selling drug globally now is Parit (Rabeprazole) with sales of around $1.1 billion.
Eisai's presence in India goes back to 1999 when it out-licensed a key neuropathy drug, Methycobal, to Wockhardt and followed it up with an alliance with GlaxoSmithKline for its gastro-intestinal blockbuster Parit. It also has a tie-up with Unichem for a muscle-relaxant pain reliever. These agreements will continue to be in place, Matsue said.
The Japanese company plans to appoint a field force of 15 specifically to promote the life-saving cancer drug to cover about 400-odd oncologists across the country.
The company, which has been growing at a strong double-digit clip, expects a jump in profit for the fiscal year 2015, he said.
Source: http://timesofindia.indiatimes.com/business/india-business/Japanese-company-prices-breast-cancer-drug-in-tiers/articleshow/25285951.cms
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