Topic 12 of 20
GS Paper 3 Pharmaceutical Policy Orphan Drugs, Clinical Trials and Pharma Policy

India's Patients Are Its Strongest Pharma Asset: Trading Trial Cohorts for Fair Orphan-Drug Prices

Source The Hindu, CDSCO, PIB, US FDA, Reuters

In mid-2025, the family of a 16-month-old child in Kolkata raised ₹9 crore through crowdfunding to pay for a single gene therapy. The government's rare-disease support stops at ₹50 lakh, one-eighteenth of that amount. Nearly 4,000 other children are waiting on a government crowdfunding platform for the same kind of help.

Summary

In an opinion piece in The Hindu, researchers from the Tata Institute for Genetics and Society argue that India can build a globally competitive industry for rare-disease drugs, also called orphan drugs. There are around 8,000 rare diseases worldwide and 1,004 rare genetic disorders have been reported in India.

Only about 5% of rare diseases and associated conditions have any approved drug. Where treatments exist, gene therapies such as Lenmeldy ($4.25 million), Hemgenix ($3.5 million) and Elevidys ($3.2 million) are priced far beyond the ₹50 lakh support available under the National Policy for Rare Diseases.

The authors make three points. First, India's large and, in some communities, endogamous population gives it trial cohorts that are hard to find elsewhere. Second, its generic, biosimilar and CAR-T manufacturing base can produce small batches at low cost.

Third, Rule 101 of the New Drugs and Clinical Trials Rules 2019 offers a quicker approval route. In return for patient participation, they propose that India set drug prices at home and in the Global South, supported by production-linked incentives and advance market commitments.

WHY IN NEWS FOR UPSC & STATE PCS

In The Hindu's opinion pages, researchers from the Tata Institute for Genetics and Society have proposed a policy framework to make India a hub for rare-disease drug trials and manufacturing. It comes as families continue to crowdfund crore-scale gene therapies that the government's ₹50 lakh support cap cannot cover.

Standard News

India's Real Advantage in Rare-Disease Drugs Is Its Patients Developing a

drug for a rare disease is difficult for a simple reason. Before a company can show that a drug works, it has to find enough people who have the disease. When a disorder affects one person in tens of thousands, recruiting a trial cohort can take years. India has an unusual advantage here and it comes from its population genetics.

Why some "rare" diseases are less rare in India Many rare disorders are recessive.

A child develops the disease only if they inherit a faulty copy of a gene from both parents. In a large, mixed population, two carriers of the same rare variant seldom have children together, so the disease stays rare. Endogamy, the practice of marrying within a community, changes those odds.

If a variant entered a closed community generations ago, it keeps circulating within that community instead of being diluted across the wider population. Two carriers are then much more likely to meet. A simple way to picture it: a rare card is more likely to be drawn twice from a small, closed deck than from a huge shuffled pile.

The analogy has limits. Genes are not drawn at random and endogamy raises risk only for variants already present in that group. But it captures the mechanism. The data reflects this. In particular ethnic groups, beta-thalassemia has been reported at 10.5%, against 3.7% in the general population.

Patients are also increasingly organised: one study follows 70 people with GNE myopathy and Rett syndrome groups maintain a registry of 400+ patients.

For a company developing an orphan drug, a concentrated, registered and reachable group of patients is often the hardest thing to find.

The problem and the bargain that could fix it Despite these advantages, Indian patients rarely take part in international orphan-drug trials.

Even when a drug is approved, its price puts it far out of reach. Lenmeldy costs $4.25 million, while the National Policy for Rare Diseases covers only ₹50 lakh. The Kolkata family had to raise ₹9 crore, eighteen times that cap. The authors propose an exchange based on benefit-sharing, a principle discussed in the negotiations on the WHO Pandemic Agreement:

  • India contributes trial cohorts, low-cost small-batch manufacturing and a clearer approval route under Rule 101, which lets CDSCO skip repeat local trials for drugs approved in specified countries.
  • India gets the right to set prices within India and the Global South. Developers remain free to price elsewhere.
  • The state reduces the risk through production-linked incentives and advance market commitments, with the government agreeing in advance to buy set volumes at set prices through Centres of Excellence, CGHS and Jan Aushadhi Kendras.

Where

India stands globally On manufacturing, India is already ahead of most countries. Its generics fill 47% of US generic prescriptions, it supplies 15% of US biosimilars and it now makes CAR-T therapies to international standards.

Crucially, Indian manufacturers are willing to produce small volumes, which many Western plants avoid. On drug discovery and trials, India lags. The US and China are competing hard in this field and China already combines access to patients with low-cost production.

India has both of those advantages too. What it lacks is a policy that turns them into leverage in negotiations with drug developers. The exam lesson is that access to patients is a bargaining asset, not just a public-health burden. The practical question for Indian policy is whether the country treats its cohorts as something to offer for free or as the basis for negotiating fair prices.

Quick Facts

Key numbers & takeaways — revise these first

  • Drugs developed for rare diseases are called orphan drugs, because small patient numbers historically discouraged companies from developing them.

  • There are around 8,000 rare diseases globally; 1,004 rare genetic disorders have been reported in India.

  • Drugs exist for only about 5% of rare diseases and associated conditions.

  • The US Orphan Drug Act of 1983 offered tax incentives, seven years of market exclusivity, grants and fee waivers.

  • US orphan drug approvals rose from 38 before the Act to 1,122 by 2022.

  • Under the National Policy for Rare Diseases, the Government of India provides up to ₹50 lakh per patient.

  • Nearly 4,000 children are listed on a Government of India crowdfunding platform, with a combined annual treatment cost of over ₹9,000 crore.

  • Rule 101 of the New Drugs and Clinical Trials Rules 2019 allows CDSCO to waive local trials for drugs already approved in specified countries.

  • Indian generics fill 47% of US generic prescriptions and Indian firms supply 15% of biosimilars sold in the US.

  • The Central Drugs Standard Control Organisation (CDSCO) is India's national drug regulator.

Beyond The Headlines
GS Paper 3 Orphan Drugs, Clinical Trials and Pharma Policy

Connect the dots for your UPSC preparation.

Standard news covers the event. Log in to read our comprehensive analysis and uncover the hidden constitutional, structural, and ethical dimensions of this topic:

1

A plain-language explanation of how endogamy concentrates recessive disorders and the specific trial problem that concentration solves

2

Why the ₹50 lakh cap cannot close a gap averaging about ₹2.25 crore per child a year, even with crowdfunding

3

The benefit-sharing bargain in detail, including the ethical safeguards needed so that patients become partners rather than just trial subjects

4

A roadmap from Rule 101 guidance documents to PLI incentives and advance market commitments, set against the US-China race in rare-disease drugs

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