More from India, specifically its Department of Industrial Policy and Promotion (DIPP), on its concern over how to limit impact of foreign investment in the Indian Pharmaceutical industry. DIPP fears that foreign multinational investment into the domestic Indian drug firms will result in a greater concentration on export markets and shortages of cheap drugs in the domestic market.
DIPP's proposed solutions have included promoted compulsory licensing as “a focused and sharp response which can be invoked when a single critical drug is either unavailable per se or unavailable at reasonably affordable prices.” Now DIPP is suggesting that foreign multinational investment be capped at a maximum of 49% for direct investment into domestic pharma firms. Currently, foreign drugmakers now command 15 percent of the Indian market, up from 10 percent in 2009 -- and is expected to exceed 20 percent by the end of this fiscal year.
“The recent trend has shown that the foreign companies are taking over the existing businesses from the local players to instantly grab a significant market share instead of making new investments that help in expanding the industry,” Dilip Shah tells LiveMint.
Posted by Bruce Lehr January 3rd 2011.