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IN THE IE October issue Physician-Scientist Dr Swami Subramaniam refers to the substantial savings in cost that can be effected by switching to generics from branded drugs. Pharma compa­nies led by US multinationals have been pointing to the huge costs involved in discovering new drugs and formulations. The process involved was also lengthy involving long months of work at the laboratories, testing on animals and later on humans in stages, passage through the regu­lators and in marketing. Pharma companies have been loading all these costs price on the consumer. With increas­ing affluence and ageing, there has been acceptance of the high prices. In the American model a flourishing insurance sector takes its share.

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