Nearly 32 to 39 million people fall below the poverty line annually due to health issues including cancer.
· High reliance on out-of-pocket expenditures and limited insurance places immense financial strain on Indian families.
· Biosimilars offer a cost-effective alternative to expensive medicines
A report by the New Delhi-based think tank Council for International Economic Understanding (CIEU) has emphasised the need for a supportive regime to encourage biosimilars in India, which can be a cost-effective alternative to expensive biologic therapies. The report highlights the role of biosimilars and how they can contribute to more affordable and cost-effective advanced treatments for diseases affecting millions of Indians.
As per CIEU, India’s healthcare system struggles with high out-of-pocket costs and limited insurance, pushing 32–39 million people below the poverty line each year. Similarly, the country’s healthcare system significantly relies on out-of-pocket expenditures, which accounted for approximately 63 per cent of total health spending as of 2022, making it one of the highest rates globally.
The rising burden of chronic and lifestyle diseases in India has become a significant public health concern, reflecting a shift in the country’s disease profile, as per the think tank’s report. As of 2022, approximately 42 per cent of adults and the elderly in India reported having at least one chronic disease, with hypertension and diabetes being the most prevalent conditions. Further, the rising prevalence of chronic diseases like cancel requires urgent need for affordable and accessible care.
There is a need for a supportive regime to encourage the adoption of biosimilars – pharmaceutical products highly similar to already approved biological medicines and designed to provide comparable therapeutic outcomes at a lower cost.
“Biosimilars represent a crucial advancement in making treatments for chronic diseases like cancer and autoimmune conditions more affordable in India, where the burden of such illnesses is escalating. This affordability is vital in a healthcare landscape where many patients face financial barriers to accessing necessary treatments,” the report says.
As per the report, biosimilars offer significant advantages by improving affordability, accessibility, and healthcare sustainability. They lower treatment costs, making life-saving biologics more accessible to a larger population, particularly in managing chronic diseases like cancer, diabetes, and autoimmune disorders.
CIEU report states that the affordability and availability of biosimilars are threatened by patent evergreening – a practice adopted by certain companies where minor modifications to existing drugs are used to extend market exclusivity. As per the report, such strategies delay the introduction of cost-effective biosimilars, keeping treatment costs high and limiting access for Indians. While India’s legal framework has been instrumental in curbing these practices, the report has highlighted that challenges persist in ensuring timely market entry for biosimilars.
