The Central Government has ruled out any foul play in the bulk purchase of avian flu drugs from multinational Roche while cheaper versions of 'oseltamivir' were available with Indian companies. The government clarified that 70% of the purchase was made from Hetero Drugs and the impression 'that the Government has purchased costly anti viral drugs under the influence of MNCs and neglected Indian pharmaceutical companies' was not true.
In a suo moto statement made in Rajya Sabha on March 22, Union Health Minister Dr Anbumani Ramadoss said that the decision to stockpile one lakh courses of oseltamivir was taken as per WHO guidelines. "The quantity of one lakh courses has been procured at an approximate cost of Rs 7 crore from Roche and from Hetero Drugs Ltd," the minister stated.
According to him the purchase was done after the bids were processed by an Inter Ministerial Task Force which included secretaries of Ministry of Health & Family Welfare, Department of Animal Husbandry & Dairying, Chemicals and Petrochemicals, Industrial Policy and Promotion, Department of Biotechnology, Department of Scientific and Industrial Research, DG, ICMR, Drug Controller General of India and Director General of Health Services.
The minister explained that the Task Force had negotiated with three Indian companies Hetero Drugs Limited, Cipla and Ranbaxy before placing the orders with Hetero and Roche.
"While Hetero Drugs offered immediate supply of 1 lakh courses, both Cipla and Ranbaxy informed the Task Force that they would need more time to determine the price at which they could offer their drug to the Government of India. Accordingly, it was decided to procure 50,000 courses of Oseltamivir Phosphate from Hetero Drugs Limited at Rs 600.00 + Excise Duty + Sales Tax, total cost for Rs 724/- per pack of 10 capsules. Hetero Drugs gave an additional discount of 2 per cent on their quoted price. An order for 30,000 courses of Tamiflu was placed with Roche for delivery by March/April, 2006. When the outbreak of Avian Influenza was announced at Navapur in February this year, another 20,000 courses were purchased from Hetero Drugs Limited. It is during this time that Cipla announced through the media that it too had developed its own version of Tamiflu and would market the same in the brand name of Anti Flu. Cipla had also received marketing approval from the Drug Controller General of India in February 2006. Therefore, it was not in a position to have supplied the drug in October-December 2005, when the orders were placed by the Government of India," Ramadoss clarified.
"The government followed a very transparent procedure in procuring anti viral drugs for Avian Influenza and it has not acted under influence of any MNC. I am pained to state that responsible people have made statements about a serious public health hazard in a frivolous manner and have questioned the earnestness, sincerity and integrity of this Government in responding to the crisis. It is my request that persons holding responsible positions should not allow themselves to be subjected to misinformation by vested groups," the minister appealed.