'Make doctors legally bound to prescribe only generic drugs'

Government should bring in a legislation that would make it compulsory for doctors to prescribe only low-cost generic drugs, a Parliamentary panel today said.
A generic drug is identical to the branded drug. It is sold at a much lower price than the branded price. Generic version of a drug is sold after patents on the original medicine expire.
To promote the consumption of generics in the country, the committee has "recommended strongly that the government bring in legislation to make it legally binding on all doctors to prescribe only generic drugs in their prescriptions".
Noting that there is huge variation between the prices of branded and generic medicines, the panel said that medicines should be provided at cheaper rates to the common man on priority basis.

Besides, the Parliamentary Standing Committee on Commerce has suggested a "blanket ban" on foreign direct investments in brown field (existing) pharma projects.
These suggestions come at a time when government is looking at ways to attract foreign funds in diverse sectors including pharmaceuticals.

In its report on 'FDI in Pharmaceutical Sector', the panel said it was concerned about the shift of ownership of generic drug makers to the hands of multinational firms, that results in change of business model and marketing strategy.
According to the committee, since 2006-07, seven domestic pharma companies were acquired by foreign players "at highly over-valued prices".

Speaking to reporters, panel chairman and BJP member Shanta Kumar said there should be blanket ban on any FDI in brown field pharma projects.
The panel does not have any reservation against 100 per cent FDI in green field projects under automatic route, he added.
India is a leading player in the generics drug market and exports around Rs 42,000 crore worth medicines annually.