National Digital Drugs Databank

Subject – Economy

Context – National digital drugs databank will help address ‘information asymmetry’ in pharma space: CCI study

Concept –

A national digital drugs databank will help in addressing “information asymmetry” as well as provide key inputs in mapping the regulatory needs of different states, according to a pharmaceutical sector study conducted by the Competition Commission of India.
The fair trade watchdog, which works on ways to foster competition and curb anti-competitive practices, in the market study found that brand competition overrides price competition in the domestic market where generic formulations are marketed with distinct brand names.
Generic drugs play an important role in bringing down drug prices, thereby reducing healthcare costs and improving access.
- In India, generics dominate pharmaceutical sales, and the generic manufacturing within each molecule/formulation market is characterised by the presence of multiple manufacturers.

Generic Medicine

A generic drug is a pharmaceutical drug that contains the same chemical substance as a drug that was originally protected by patents.
Generic drugs are allowed for sale after the patents on the original drugs expire.
Because the active chemical substance is the same, the medical profile of generics is believed to be equivalent in performance.
A generic drug has the same active pharmaceutical ingredient (API) as the original, but it may differ in some characteristics such as the manufacturing process, formulation, excipients, color, taste, and packaging.
The dosage, composition, method of intake, benefits, quality, and even side effects of generic medicines are similar to the brand-name version of the drugs.

API

An active pharmaceutical ingredient (API), is the key ingredient of a drug or medicine, which lends it the desired therapeutic effect or produces the intended pharmacological activity. For example, paracetamol is a bulk drug, which acts against pain.
API, also called as Bulk Drugs are mixed with binding agents or solvents to prepare the finished pharmaceutical product, i.e. a paracetamol tablet, capsule or syrup, which is consumed by the patient.