First News
Volume:7, Number:31
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Around The World 1
THIS WEEK

Gambling on Grey Market

| Jobaid Alam |

A growing number of cancer patients are turning to generic drugs through unregulated channels as the price of drugs in the country is too high for them to afford

Cancer patients and their families in China often have to choose between nearly USD3,000 a month for an approved drug or pay a fraction of the price for a generic drug not approved for use in China. And it is needless to say that financially strapped families go for the latter. They are turning to the increasingly popular, unregulated market of online pharmacies, agents and peer groups for drugs

Many of them buy a generic version of Iressa, not approved for use in China, directly from a manufacturer in India. Of 30 cancer patients interviewed by Reuters over the past year, two thirds took routes similar to this, pushed by China’s high drug prices and a lack of access to newer drugs. The patients were aged between 32 and 81, had varying income levels and suffered from a variety of cancers. There is no official data on how many cancer patients in China turn to unregulated channels, but research indicates an increase globally in the use of grey and counterfeit markets. Some patients look for a cheaper alternative to the approved Zadaxin, while others find a cheaper treatment through a patients group recommended by doctors, who often turn a blind eye to their patients accessing drugs through the grey market, and some actively help their patients do this. Medicines bought through unofficial channels are not necessarily harmful, and some of the generics available online are approved for use in other markets. But they can include drugs that are ineffective or fake.

The reason patients in China turn to these unregulated channels are largely financial. Low average salaries, a chasm between urban and rural wealth, and creaking state reimbursement schemes mean serious disease is among the leading causes of poverty, creating a major social burden and rising debt. The generic drug can cost 13 times less than the China-approved branded Tarceva. But the Chinese also turn to unofficial channels because of bottlenecks in China’s drug approvals, which pharmaceutical executives say can mean drugs lag markets like the United States by 5-10 years. China requires all new drugs to be tested and approved in the country, but has a shortage of specialists for this work.

The national drug reimbursement list, the main catalogue of medicines covered by state health insurance, is being updated for the first time since 2009. That means even if a drug has been approved, patients can often only access it if they pay for it themselves. The high cost of drugs is not confined to China, and there has been a jump globally in so-called ‘buyers clubs’ — informal patient groups sourcing drugs via the grey market to help those with HIV and hepatitis access drugs at more affordable prices.

China last year had four million new cancer cases, according to official data, and the nation’s personal healthcare bill is set to soar almost fourfold to the equivalent of USD1.84 trillion by 2025, according to Boston Consulting Group. For many Chinese, being left outside the health system at a time of need is in sharp contrast to the ‘iron rice bowl’ concept of state benefits and guarantees for life. “If we cannot buy the drug in China or we cannot afford to buy it, then what other options do we have?” asked Duan Guangping, a banker in Chongqing, whose mother got lung cancer in 2011. He bought a drug for her from Bangladesh.

China has sought to increase insurance coverage for serious diseases, and encourage drug makers to lower their prices to gain better market access. It has also tried to speed up the regulatory approval process by thinning out the waiting list, forcing manufacturers to withdraw new drugs where trial data isn’t strong enough. But change has been slow, and a lot of patients with cancer cannot wait. The overall five-year survival rate for cancer in China is just over 30 percent, less than half the level in the United States, according to Deutsche Bank.

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