A Parliamentary panel has asked the Government to stop any further acquisition of Indian pharma units by multinational companies. It has also demanded a blanket ban on FDI in brownfield pharma units as it is being misused to gain monopoly over Indian market and destroy its technological capability to produce generic medicines.
The Parliamentary Committee on Commerce, headed by BJP leader Shanta Kumar, has also demanded a legislation mandating that doctors prescribe only generic drugs so that people could get medicines at affordable rates. In its report on ‘FDI in Pharmaceutical Sector’, submitted in Rajya Sabha on Tuesday, the panel has expressed surprise that since 2006-07, seven prominent domestic pharma companies have been acquired by foreign companies at highly over-valued prices conveniently using the 100 per cent FDI route and hiding the real intention of profit maximisation at the cost of the health of people.
India has been a pioneer in production of generic medicines exporting Rs 42,000 crore worth of medicines. Even UNICEF purchased 50 per cent of its medicine from the country, Shanta Kumar pointed out and apprehended that such takeover would hinder the supply of low priced generics to the people of developing countries.
In view of huge variation between the prices of branded and generic medicines with the former being 80 to 85 times costlier, the panel asked the Government to bring a legislation making it legally binding on all doctors to prescribe only generic drugs in their prescriptions. The suggestion was given by film actor Amir Khan, when he appeared before the committee, and is being followed in many other countries.
Since 61 patents of foreign companies are soon to expire, so through acquisitions they are attempting to get concessions beyond that available in TRIPS and maximise their profit by using Indian market for future expansion. Also, to get hold over western markets where generic medicines are gaining acceptability.
Kumar pointed out that invoking of Compulsory license provision under Indian Patent Act for manufacture of cancer drug SORAFENIB by Hyderabad-based NATCO reduced the price from a whopping Rs 2.8 lakh to Rs 8,800 for a pack of 120 tablets required for a month. He demanded that more life saving drug should be manufactured under Cl to ensure cheaper medicines to protect peoples right to life. The panel also called for reviving and re-strengthening pharma PSUs like HAl, IDPl to produce life saving generic medicine and vaccines at affordable prices.