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It's a policy that has India's pharmaceutical
industry up in arms. The issue at hand: the decision of Union
Minister for Chemicals and Fertilisers Ram Vilas Paswan to push
through mandatory price negotiations for patented drugs in the
draft National Pharmaceutical Policy 2006.
"It will erode India's credibility on intellectual property
rights and will seriously affect the introduction of newly patented
drugs," says Ranjit Shahani, President, Organisation of Pharmaceutical
Producers of India, which represents research-oriented drug companies,
and VC & MD, Novartis India. Adds Kewal Handa, MD, Pfizer
India: "This will send a wrong message."
It's not just MNCs who are upset. D.G. Shah, Secretary General,
Indian Pharmaceutical Alliance, a grouping of top Indian drug
companies, says: "This policy is reminiscent of the Drugs
Price Control Order, 1979, which controlled prices of some 350
drugs, resulting in widespread shortages of medicines and the
manufacture of spurious drugs. It can seriously jeopardise the
potential of the Indian pharmaceutical industry and drive away
foreign investments." He adds that the new policy will effectively
impose price controls on almost 70 per cent of all drugs sold
in the country. "The ability of Indian players to emerge
as global scale generics and proprietary drug companies will be
severely impaired," he adds.
| THE ARGUMENTS |
FOR
» Price
controls essential in a poor country
» Price
controls are WTO-compatible
» Patented
drugs costlier; hence price negotiation justified
» Price
controls crucial for life saving drugs like those for AIDS
and hepatitis
AGAINST
» Move
will send wrong signals to the world at large
» Move
will hurt R&D efforts of Indian companies
» Move
will result in MNCs avoiding India for manufacturing as
well as R&D
» Move
may lead to shortages
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Already, some leading players are searching for a compromise.
"Some price controls may be necessary," concedes G.V.
Prasad, Executive Vice Chairman and CEO, Dr Reddy's Laboratories,
"but they must be based on the cost of therapy and not the
cost of production." He points out that even multinationals
are today talking of a dual pricing mechanism to address this
issue, for example, by charging lower prices for aids drugs in
Africa than in Europe. But is the government listening?
The draft policy is now being circulated among the various government
departments for their comments. A final draft, incorporating some
of these, will be placed before the Cabinet for approval in July-August.
-E. Kumar Sharma
Bhutia
Cashes In On Cup
He is
considered the marketable face of Indian football. And World Cup
fever is rising in the country. Result: Bhaichung Bhutia is being
chased by television channels and marketing companies in search
of (scarce) iconic figures to do commentary and plug their products.
At last count, Bhutia was doing commentary, writing columns
and also endorsing some brands. He's been hired by TV channel
CNN-IBN (for Rs 30,000 per show) to give his expert opinion on
World Cup matches; the newly-launched Bengali language Kolkata
TV has also taken him on board for two years (for an undisclosed
amount). He will be writing analytical match reports for DNA (for
Rs 10,000 per article). And finally, newly-launched biscuit brand
Anmol has signed him up as a celebrity endorser for its television
and outdoor campaigns (again for an undisclosed amount).
"My new role sends out a message that there are ample rewards
for Indian footballers who do well," says Bhutia, who is
the only Indian footballer to play in the English Second Division
(he spent three seasons with Bury FC). "He is certainly a
youth icon," says Roopinder Singh, Regional Head (East),
Showdiff Worldwide, the celebrity management firm owned by Ravi
Shastri.
-Ritwik Mukherjee
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