BJP MPs seek steps to save domestic drug sector

Concern was voiced in the Rajya Sabha today by BJP on the issue of take-over of Indian pharma entities by foreign firms with members from the party demanding steps to save the domestic drug sector.
Raising the matter during Zero Hour, Shanta Kumar (BJP) said foreign drug companies were buying Indian firms at eight times more their cost only to harm the domestic drug sector.
He alleged that proposals of such take-over of drug firms were being cleared in a hurry, despite objections from the Health Ministry.
Kumar claimed that the Prime Minister has asked for clearing all pending proposals of pharma take-overs.

The BJP member said India's drug industry was well known across the world. Rs 40,000 crore worth drugs were exported to many countries and foreign firms were out to take control over it by buying all Indian drug makers.
He said 61 patents of world's pharma firms are expiring and India will benefit the maximum from this.

"To avoid this, foreign pharma firms are buying Indian companies. Many foreign companies have brought Indian firms at eight times their cost," he said.
Kumar said as many as 60 of the 61 projects cleared in the pharma sector were those in brown-field projects aimed at buying already established drug companies.

He said the Parliamentary Standing Committee on Health in its recent report recommended a ban on brown-field projects.
He also said government has allowed 100 per cent FDI in pharma sector through the automated route and these concerns have been brought to the notice of the Prime Minister.