India will be self-reliant in bulk drugs by 2020: Govt

Union Minister Ananth Kumar today said the country will be self-reliant in bulk drug in the next five years as the government is exploring ways to boost infrastructure and bring down cost of production as also reduce the dependence on imports from China.
He also said the Union Cabinet would soon take a final decision on the recommendations of the Katoch Committee, which was set up to suggest ways to strengthen domestic pharma sector and reduce dependence on Chinese imports, Chemicals and Fertilisers Minister Ananth Kumar said today.
Inaugurating the first edition of 'India Pharma 2016 & India Medical Expo 2016' here, he said "India would be self-reliant in bulk drug by the end of 2020".

Pitching for a separate ministry for pharma, he assured industry leaders of addressing their concerns onvarious issues including credit at affordable interest rateand tax exemption.
"There is a report by Katoch Committee... Already the Ministry has accepted that report and we have circulated a Cabinet note containing the recommendations of the Committee," Kumar said.
Hepointed out that the recommendations include providing tax incentives, infrastructure incentives, interest subvention and providing common facility for bulk drug manufacturing.

"... Regarding bulk drug, I'm assuring you that we are in active consultation process regarding Katoch Committee recommendations that will give bulk drug industry a big leap. The government of India, especially the ministry will fully support that and will see that very soon a considered Cabinet decision will come out," he added.

Government had set up a committee of secretariesheaded by Secretary, Health Research, V M Katoch to suggestways to reduce the dependence on bulk drug imports from China.
Kumar said, "By the end of 2020 we see that we will not be a recipient from a single source of bulk drug. We will also compete, we will also Make in India and to a great extentin bulk drug, India is going to become self-reliant."
Despite the headwinds to the US business, Indian generics
are now trading at a record 138 per cent premium over global generics, and while a premium is justified, the extent of the premium is questionable, given the deteriorating dynamics of the US segment, which has contributed the bulk of the growth for the Indian generics.

Last week, global and Indian generics stocks went for a free fall following news that the two-year old antitrust investigation by the US Justice Department (DoJ) over generic drug pricing is likely to result in charges being filed before the year end.
The investigation's focus is on a dozen companies and over two dozen drugs, many of which are not in the public domain. It is probing potential collusion or anti-competitive activities to raise prices.
Among Indian companies involved are Sun (doxycycline and albuterol), Dr Reddy's (Depakote ER and pravastatin), Zydus (Depakote ER), and Taro (drug names not disclosed), though the scope could likely be expanded to include other companies as well.

It is extremely difficult to prove collusion, but the US DoJ has, in the past, been successful in its investigations in other sectors, and it seems unlikely, that charges will be filed unless the DoJ has potential evidence to support its charges, the report said.