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Annals of Oncology 24 (Supplement 5): v13–v16, 2013
doi:10.1093/annonc/mdt323
Cost comparison and economic implications
of commonly used originator and generic
chemotherapy drugs in India
G. de L. Lopes*
The Johns Hopkins Singapore International Medical Centre, The Johns Hopkins University School of Medicine, Singapore, Singapore
introduction
Non-communicable diseases (NCDs) caused 63% of global
deaths in 2008, 80% of which occurred in low- and middleincome countries. In September 2011, recognizing the burden
of non-infectious maladies, the United Nations held a high level
summit on the prevention and control of NCDs [1]. Aiming to
raise awareness and lead the efforts in combating NCDs in
member nations, the general assembly adopted resolution 66/2
[2]. Cancer, leading to >7.1 million deaths yearly and exceeding
those caused by tuberculosis, human immunodeficiency virus/
acquired immunodeficiency syndrome and malaria combined
[3], is the most important cause of lost years of life and
productivity worldwide. Cancer had a total economic impact of
USD 895 billion in 2008, not including direct costs of treatment,
according to a study supported by the American Cancer Society
and the LiveStrong foundation [4].
Cancer control strategies including tobacco control, vaccines
to prevent viral infections that cause cancer, screening
programs, early detection and innovative treatments have
started to make strides against malignancies overall, especially
against specific types of cancer. In particular, there have been
marked improvements in the management of childhood cancer,
for which 5-year survival rates now reach 80% when compared
with <50% four decades ago [5]. Moreover, in the last couple of
decades, adjusted cancer death rates have decreased by nearly
*Correspondence to: Dr G. de L. Lopes Jr, Senior Consultant in Medical Oncology,
Assistant Professor of Oncology, The Johns Hopkins Singapore International Medical
Centre, The Johns Hopkins University School of Medicine, 11 Jalan Tan Tock Seng,
Level 1, Singapore 308433, Singapore. E-mail: [email protected]
21% in men and 12% in women in the United States, due to
better prevention, early diagnosis and treatment of specific
malignancies, such as those of the breast, colon and lung among
others [6].
Even patients with non-curable metastatic disease have seen a
significant impact in their survival and quality of life with
systemic treatment with chemotherapeutic, hormonal and other
targeted agents. Patients with colon and lung cancers now have
median survivals that are measured in a few years rather than
just a few months. In the period 1999–2006, according to the
SEER Cancer Statistics Review, 5-year survival rates in the
United States improved 36% when compared with the period
between 1975 and 1977, when one considers all tumor types [7].
Access to medications in general—and cancer treatments in
particular—is one of the major challenges facing the oncology
and public health communities today, especially in low- and
middle-income countries. Drug development is a long and
expensive process; it may take a decade or longer, the screening
of thousands of compounds and capitalized costs of nearly USD
1.8 billion to bring a new medication to market [8]. As such,
nations and the international community grant patents, which
give manufacturers a period of exclusive rights to sell a new
drug, as incentive for innovation. Once a patent expires, other
companies are allowed to make and market a once-exclusive
branded agent, as long as they can demonstrate bio-equivalence
[9]. Once generic competition sets in, the price of medications
can drop significantly, often by ≥80% [10], allowing access to a
larger number of patients.
In this paper, the author provides a cost comparison between
the most frequently used generic and originator chemotherapy
© The Author 2013. Published by Oxford University Press on behalf of the European Society for Medical Oncology.
All rights reserved. For permissions, please email: [email protected].
research
article
Cancer treatments have improved outcomes but access to medications is an issue around the world and especially so in
low- and middle-income countries, such as India. Generic substitution may lead to significant cost savings. The author
aimed to compare the cost and estimate potential cost savings per cycle, per patient, and for the country as a whole with
generic substitution of frequently used chemotherapy drugs in the treatment of common cancers in India. Generic
paclitaxel (Taxol), docetaxel (Taxotere), gemcitabine, oxaliplatin and irinotecan cost from 8.9% to 36% of their equivalent
branded originator drug, resulting in cost savings of ∼ Indian Rupees (INR) 11 000 to >INR 90 000 (USD 200–1600, Euro
160–1300) per cycle; and ∼INR 50 000 to >INR 240 000 (USD 900–4300, Euro 700–3400) per patient. Overall, potential
yearly savings for health systems in India were nearly INR 47 billion (∼USD 843 million, Euro 670 million). In conclusion,
generic substitution for frequently used chemotherapy drugs in the treatment of common cancers has an enormous
potential to generate significant cost savings and increase access to cancer treatments in India and other low- and
middle-income countries.
research article
drugs in India, paclitaxel (Taxol), gemcitabine, docetaxel
(Taxotere), oxaliplatin and irinotecan, highlighting and
discussing the economic implications of generic substitution in
common cancers in the country.
methods
cost and currency
Using cost data of chemotherapy agents provided by Fresenius Kabi, a
pharmaceutical company, as list price in India, the author calculated the cost
savings per patient per cycle for the generic drugs when compared with the
originator-branded versions. Costs are depicted in 2012 Indian Rupees
(INR) and represent drug costs only, assuming that the cost of
administration, physician visits, complications and others would be similar
between the generic and the originator drugs.
Annals of Oncology
colon cancer in 2008, suggesting that 70% of patients developed metastases
during the course of their disease. The author assumes that 20% of patients
with colorectal cancer also require adjuvant treatment. There were 115 251
cases and 53 592 deaths from breast cancer—the author assumes that all
deaths represent metastatic cases and that 40% of patients are eligible for
adjuvant chemotherapy; finally, there were 8960 cases and 7766 deaths from
pancreatic cancer, suggesting that 1194 patients were eligible for adjuvant
therapy and the remainder for palliative chemotherapy.
sensitivity analyses
The author also carried out sensitivity analyses by halving and doubling the
parameters used to calculate cost savings in order to test the robustness of
the findings as variables were changed.
results
discounting
cost comparison
No discount is employed due to the short time horizon of 1 year.
The cost of generics ranged from 8.9% to 36% of the branded
drug (irinotecan, 8.9%; paclitaxel, 23%, docetaxel, 24%;
oxaliplatin 32%; gemcitabine, 36%). Table 1 depicts the
potential cost savings with commonly used generic
chemotherapy drugs compared with originator versions in
India.
chemotherapy drug usage
The following commonly used chemotherapy drugs were chosen as both
generics and branded originator drugs are available: paclitaxel (Intaxel and
Taxol), docetaxel (Taxotere) (Daxotel and Taxotere), oxaliplatin (Oxitan
and Eloxatin), irinotecan (Irinotel and Camptosar) and gemcitabine
(Gemita and Gemzar). Drug usage was calculated based on a body surface
area of 1.7 and chemotherapy doses as follows: oxaliplatin 85 mg/m2 on days
1 and 15 of each 28-day cycle; irinotecan 180 mg/m2 on days 1 and 15 of
each 28-day cycle; paclitaxel 80 mg/m2 on days 1, 8 and 15 of each 21-day
cycle; docetaxel 75 mg/m2 every 21 days; gemcitabine 1000 mg/m2 on days
1, 8 and 15 of a 28-day cycle.
exchange rates
At the time of writing, at current exchange rates, one INR equals USD 0.018
and Euro 0.0143.
cost-savings estimate
Cost savings were estimated for each cycle based on the details above. For an
estimate of cost savings for India as a whole, the author made the following
assumptions: oxaliplatin and irinotecan were used to treat patients with
colorectal cancer, the former in stage III for 6 months and in stage IV for
8 months (as in the non-bevacizumab containing arms in the NO16966
trial) [11] and the latter in stage IV only for a duration of 2.6 months (as in
the control arm of the EPIC trial) [12]; paclitaxel and docetaxel were used to
treat patients with breast cancer in the adjuvant and metastatic settings,
assuming each was used for 50% of patients and a duration of 12 weeks in
the adjuvant and 6 months for paclitaxel and 8 months for docetaxel in the
metastatic setting [13, 14]; gemcitabine was used to treat patients with
metastatic pancreatic cancer for a median duration of 3.3 months (as in the
control arm in the recent comparison with FOLFIRINOX), patients with
operable pancreatic cancer for 4 months and patients with metastatic breast
cancer for a duration of 2.2 months as in the control arm of the EMBRACE
trial [15, 16]. GLOBOCAN 2008 data for India were used to estimate the
number of cancer cases in the country [17]. Stage distribution and eligibility
for treatment were estimated based on the discussions with Indian
oncologists and extrapolation from GLOBOCAN data as actual data on the
exact stage distribution and percentage of patients who actually have access
to treatment in the country is incomplete and/or unavailable. The author
considered that ALL eligible patients would receive the respective agent.
According to these data, there were 36 476 cases and 25 690 deaths from
v | Lopes
cost savings per cycle
With a 68% cost difference between the branded originator and
generic oxaliplatin, average cost savings per patient per cycle
were INR 11 782.90. Cost savings were INR 70 697.40 for each
patient who received adjuvant treatment for colorectal cancer
and INR 94 263.20 for patients with metastatic disease.
As for generic irinotecan, cost savings per patient per cycle
were INR 93 052.00. Average savings per patient with metastatic
colorectal cancer were calculated at INR 241 935.20.
Average cost savings with the use of the generic paclitaxel
were INR 27 654 per cycle, INR 110 616 for each patient with
breast cancer in the adjuvant setting and INR 237 034.29 per
patient with metastatic breast cancer.
Generic docetaxel costs only 24% of the branded originator,
so cost savings per cycle were INR 15 680 and cost savings per
patient were INR 62 720 for those who received adjuvant
treatment for breast cancer and 179 200 per patient who
received treatment for metastatic disease.
Cost savings per cycle with the use of generic gemcitabine
were INR 23 352. Cost savings per patient who received
adjuvant treatment for pancreatic cancer were INR 93 408; and
INR 77 061.60 and INR 51 374.40 for those with metastatic
pancreatic and breast cancers, respectively.
potential yearly cost savings for India as a whole
The estimated cases per year were 25 533 for metastatic
colorectal cancer, 7295 for adjuvant colorectal cancer, 69 150 for
adjuvant breast cancer, 53 592 for metastatic breast cancer, 1194
for adjuvant pancreatic cancer and 7766 for metastatic
pancreatic cancer.
As such, potential yearly overall cost savings with these
generic chemotherapy agents in the specific clinical situations
described were INR 46 856 335 283.36 (USD 843 414 035.10,
Volume 24 | Supplement 5 | September 2013
research article
Annals of Oncology
Table 1. Potential cost savings with commonly used generic chemotherapy drugs compared with originator versions
Generic Drug
Irinotecan generic
Oxaliplatin generic
Cost
savings
per dose
Cost savings per
cycle
Cost savings per patient with
46 526.00
93 052.00
241 935.20
5891.45
11 782.90
70 697.40
94 263.20
Paclitaxel generic
9218.00
27 654.00
110 616.00
237 034.29
Docetaxel generic
15 680.00
15 680.00
62 720.00
179 200.00
Gemcitabine
generic
7784.00
23 352.00
93 408.00
77 061.60
51 374.40
Metastatic
colorectal cancer
Adjuvant
colorectal cancer
Metastatic
colorectal cancer
Adjuvant breast
cancer
Metastatic breast
cancer
Adjuvant breast
cancer
Metastatic breast
cancer
Adjuvant
pancreatic
cancer
Metastatic
pancreatic
cancer
Metastatic breast
cancer
Potential overall
savings
Euro 670 045 594.55). The details for each drug and clinical
scenario are given in Table 1.
sensitivity analyses
When the author decreased the cost savings seen with each
generic drug by 50%, the overall cost savings were INR
33 604 319 746.48 (USD 604 877 755.44, Euro 480 541 772.37).
Cost savings when the number of cases was halved were INR
22 826 457 357.12 (USD 410 876 232.43, Euro 326 418 340.21).
discussion
This is the first study to estimate the potential yearly cost savings
with the substitution of generic versions of frequently used
chemotherapy drugs in the treatment of common cancers in
India. As described in other diseases and settings, the average
sales cost of generic drugs was 64%–91% lower than that of the
respective originator-branded drug. Moreover, there were
significant cost savings per cycle and per patient, ranging from
∼INR 11 000 to >INR 90 000 (USD 200–1600, Euro 160–1300)
and from ∼INR 50 000 to >NR 240 000 (USD 900–4300, Euro
700–3400), respectively. Overall, potential yearly savings for
health systems in India were nearly INR 47 billion (∼USD 843
million, Euro 670 million). These numbers are clearly significant
in a country with a gross national income per capita of <USD
1500 at current exchange rates, which had expenditures of only
USD 54 per capita in health in 2010 [17, 18].
Volume 24 | Supplement 5 | September 2013
Number of
cases per
Year
Potential yearly cost savings in India
In Indian rupees
(INR)
In USD
In Euros
25 533
6 177 379 848.64
111 192 837.28
88 336 531.84
7295
515 751 672.48
9 283 530.10
7 375 248.92
25 533
2 406 841 138.24
43 323 140.49
34 417 828.28
69 150
7 649 162 769.60
137 684 929.85
109 383 027.61
53 592
12 703 141 440.00
228 656 545.92
181 654 922.59
69 150
4 337 125 632.00
78 068 261.38
62 020 896.54
53 592
9 603 686 400.00
172 866 355.20
137 332 715.52
1194
111 529 152.00
2 007 524.74
1 594 866.87
7766
598 460 385.60
10 772 286.94
8 557 983.51
53 592
2 753 256 844.80
49 558 623.21
39 371 572.88
46 856 335 283.36
843 414 035.10
670 045 594.55
Several caveats have to be brought up. Economic evaluations
rely on several assumptions and changing these variables can
modify the results significantly. As seen in the sensitivity
analyses, potential yearly savings decrease to INR
33 604 319 746.48 (USD 604 877 755.44, Euro 480 541 772.37)
and INR 22 826 457 357.12 (USD 410 876 232.43, Euro
326 418 340.21), respectively, if the cost savings per drug and
the number of patients treated is reduced by half. These
numbers still represent sizable cost savings, however. It should
also be noted that this study had other shortcomings. First, it
relies on one source of data for the list price of drugs.
Discussions with colleagues in India and with IMS Health, a
consultancy, however, suggest that the numbers obtained are
reliable and representative ( personal communication). Second,
incomplete data exist about the number of patients with each
specific disease and clinical situation and the percentage of
patients who actually have access to these specific drugs. Third,
these numbers may actually under-represent the potential savings
as the estimates only include a specific set of drugs and clinical
conditions, suggesting that the benefits of generic substitution
may be even bigger overall. Finally, as the country has a robust
generic industry, cost savings seen in India may not mirror those
achievable in other low- and middle-income countries, especially
in those that rely on imports for most of their medications. Due
to these caveats, it is unclear if these results can be extrapolated to
other settings and they should be confirmed by further studies,
preferably using real world cost data.
Major challenges for the greater penetration of generics
include public and health care worker perception and quality
doi:10.1093/annonc/mdt323 | v
research article
issues. In a survey of 839 physicians, for instance, nearly a
quarter had a negative perception of the efficacy and 50% of the
quality of generic medications [18]. Furthermore, there have
been reports of low quality substitutes in oncology in low and
middle income countries. For example, a study in Iraq showed
that a significant proportion of patients with chronic
myelogenous leukemia lost hematological, cytogenetic and
molecular control after switching from branded to generic
imatinib [19]. Quality assurance with the use of good
manufacturing practices and adequate supervision by regulatory
authorities is of paramount importance to ensure bioequivalence, and therefore the safety and efficacy of generic
medications.
A systematic review and meta-analysis of 38 randomized,
controlled trials comparing generic and branded cardiovascular
drugs confirmed their clinical equivalence [20]. Little has been
published about the safety, efficacy and economic implications
of the use of generic oncology medications, however, especially
in low and middle income countries, and this gap clearly needs
to be filled by further studies. Investigators from India, with
grant support from Fresenius-Kabi, have retrospectively
collected clinical data on 393 patients who received generic
versions of docetaxel, oxaliplatin, irinotecan and gemcitabine
(Personal communication to Dr G. de L. Lopes Jr). The median
survival ranged from 12.8 months for patients with lung cancer
(66% had metastatic disease) to 30 months for patients with
colon cancer (67% of patients had metastatic disease) and
47 months for patients with breast cancer (45% had metastatic
disease) and between 20% and 45% of patients reported serious
adverse events. These data seem to conform to expectations of
survival and toxicity but it is clear that the creation of formal
registries would help the oncology community have a more
precise estimate of the clinical equivalence of generic drugs
beyond the bioequivalence required for their marketing
approvals.
In conclusion, generic substitution for frequently used
chemotherapy drugs in the treatment of common cancers has
an enormous potential to generate significant cost savings and
increase access to treatment in India.
disclosure
The author has been a consultant for Fresenius Kabi.
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Annals of Oncology
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Volume 24 | Supplement 5 | September 2013