The Hindu Business Line : Price of Chinese herb used in bird-flu drug shoots up

STAR anise is a herb used in oriental cooking. But its price has shot up by 20 times , as companies scramble to stock the Chinese herb that is also used in making Tamiflu, the medicine used globally to mitigate the effects of bird-flu.

There is a shortage of the raw material Star anise and prices have gone up from $40 to $800 for one kilogram, said Mr Amar Lulla, Cipla's Joint Managing Director.

Cipla was one of the earliest generic drug makers to throw its hat into the ring with the offer to make similar versions of Tamiflu, to meet the increased demand for the drug from across the world. Mr Lulla indicated that the company has tied-up in China for its supply of the herb.

Star anise is the source of shikimic acid used in the production of the bulk ingredient that goes into Tamiflu. And prices have skyrocketed as companies make a scramble for the Chinese herb in the anticipation that they will be able to make generic versions of Tamiflu, said an industry representative.

The increased price of the raw-material will further get reflected in the bulk-ingredient and final dosage form of Tamiflu, he said.

The Indian Government will have to decide quickly on how it plans to make Tamiflu available in the country. Will it procure the drug from Roche, the company marketing Tamiflu world-wide? Or will the Centre allow generic-drug makers to make generic or chemically-similar versions of Tamiflu? Cipla and Ranbaxy are already waiting in the wings to make generic versions of Tamiflu.

It is only when there is a definite direction from the Government that generic producers will be able to make a financial commitment with suppliers in China. At present there are suppliers who can deliver the raw material in India in a month. But the price on Star anise and the time-lag to deliver it will only increase as more global generic companies get into the fray to meet the world'sdemand for Tamiflu.

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