Attacking the proposed pharma policy of India, pharmaceutical manufacturers in the US said the move (of putting 354 drugs under price control) would not liberalise the sector and sought a level-playing field for foreign drug makers on Indian soil. The Pharmaceutical Research and Manufacturers of America (PhRMA) raised strong reservations about the move to bring 354 drugs under the ambit of price control as against 74 bulk drugs currently. In its National Trade Estimate Report on Foreign Trade Barriers 2007, issued recently, the association said the draft policy includes measures that discriminate against foreign research and development-based companies and imported medicines in violation of the General Agreement on Tariffs and Trade article III.

In the report, drug companies in the US asked the Indian government to treat them in the same manner as Indian companies are treated in the US. Urging the Indian government to allow market forces to come into play, the report said that the pricing orders are neither in the interest of the Indian economy nor of the Indian pharmaceutical industry, nor in the interest of the healthcare consumer.

Generic (drug) manufacturers from India enjoy a significant share in the world’s largest drug market. The number of generic drugs from India, which was less than 10 about a decade ago, has now grown over 350.
These drugs include anti-depressants, heart disease medicines, and antibiotics besides a variety of other medicines. The growth itself is a proof of the market access Indian companies have in the US, the report said.
Drug manufacturers in the US have also criticized the Indian government for making price negotiations compulsory before issuing the required marketing approval of patented drugs by foreign companies. It is an effort to dodge India’s WTO commitment to provide product patent protection for patented drugs and imported medicines.

Mr. Divya Aggarwal

Money Management Consultants Ltd

Senior Copy Editor, Money Management Consultants Ltd
New Delhi, India

Free Member, Joined :05/11/2007
No of Topics Posted : 113
Reply/Comments : 14