 With the Indian Pharmaceuticals Industry increasingly being exposed to the vagaries of the international business environment, and especially in key areas of research, patents, product positioning and marketing; the Government and the Industry have realised this fact and are serious about a revamp. The appointment of a R&D committee, subsequently the Task Force and the announcement of a development fund for research and development are a clear indication of the government''''s determination to raise the standards of this sector on a priority basis. Indravadan Ambalal Modi, Chairman, Cadila Pharmaceuticals Ltd, a legend and visionary in the Indian pharmaceutical industry, shares his views on these relevant issues in an exclusive interview with C H Unnikrishnan of pharmabiz.com What are your views on the recent initiatives taken by the government to prepare our Industry for the emerging scenario? All the suggestions made by the Mashelkar Committee and the Task Force are very essential and the proposals put forward by them are definitely with the long term growth perspective of the industry in view. But, the government should work it out in a very pragmatic way and the (administrative) machinery should be serious about implementing these effectively. In the areas of investment and research, how do you see the Industry adapting to the forthcoming changes? We have grown up in a very significant way in both the areas, as it has become essential for Indian companies who are serious about the business. The indications of the industry in the recent past clearly shows the capability of the companies to compete in global markets. What in your opinion will be the main implications for the Industry once the product patent era dawns? Currently, the Indian pharmaceutical sector is mainly relying on process modification or improvement for bulk drug manufacture. This has to change and should look at the possibilities of developing new molecules if they have to remain in bulk drug segment. This obviously calls for huge investments, skilled man-power and basic research initiatives. The industry will have to tighten its belt for research and development activities. It should mainly focus on three very important areas, such as (a) to try out new probable use of the existing molecules on new indications. (b) modification of the existing molecules may give better results than the existing ones and may reduce side-effects, (c) the patented herbal products should be screened thoroughly to find out a lead molecule, which can be modified for any effective molecule based on the experience of chemistry for manipulating the molecules. Do you feel Indian companies are prepared to invest this kind of money and time to take up the initiatives seriously? The companies ought to take initiatives in this regard, otherwise it will be diffciult for them to be fit into the emerging scenario. But for this, the government''''s help is unavoidable. Unless the Industry get the much-needed support from the government it is almost imposible to place this Industry on the forefront of the global marketplace. The government has decided to formulate an R&D fund for encouraging research initiatives of companies apart from the support extended from the national laboratories in the research programme. Is this a positive step? Yes, of course. The proposed R&D fund is definitely an encouragement and will help the companies. But it really depends on the mode of distribution and the way the government handles the allocation of fund as per the requirment of the Industry. Necessary criteria to manage the fund and the allocatation to individual companies should be worked out. If it works out properly, it''''s all fine. As for the major way in which the government could help is by withdrawing the DPCO (Drug Price Control Order). The companies should not have to suffer due to this Order. We should have the freedom to fix the MRP (market retail price) with a reasonable margin. Unless the companies make a profit to survive, where is the question of development and growth of the industry. The government should liberalise the market, and the competitive market will automatically control the price at a reasonable level. Or the government can even make it mandatory to sell the patent right if it feels there is a monopoly pricing in the market. |