While welcoming the proposals in the budget for pharmaceutical and biotech sectors, albeit with some disillusionment, leading industry players are now looking to grab the most out of the new measures, especially the hike in healthcare sector allocation.
"The announcement of greater fund allocation (Rs 9947 crore) for National Rural Health Mission and the cause for greater public-private partnership is an important step in the right direction,'' said Ram Sharma, managing director of Becton Dickinson India Pvt Ltd.
"BD India has in the past been partnering with National AIDS Control Organization, Indian Academy of Paediatrics and Hindustan Latex Limited in areas like patient safety and Aids control. We would also like to forge new partnerships with the government in areas like controlling diseases like tuberculosis and malaria. The convergence of key public health issues such as immunization, malaria and tuberculosis would also help build scales and efficiency in addressing these key concern areas of public health,'' he said.
"The decrease in the peak rate of duty especially for medical devices and equipment to 7.5 per cent is very encouraging since it will reduce treatment costs and make critical care more affordable for the patients. Currently, over 65 per cent of India's need for medical devices and equipment is met through import; therefore, the reduction in duty rates will encourage more players in the medical devices sector,'' said Sharma who is also chairman of Medical Equipment Committee of the American Chambers of Commerce.
Greater funds for the proposed Central Drug Authority (CDA) would help in ensuring infrastructure development for the pharmaceutical and medical devices sector. Greater inflow of funds would thus help ensure fair competition, while safeguarding patient safety and efficiency of therapy is viewed.
"The overall direction of the budget 2007-08 is positive for the pharma sector. Indian pharma sector has the potential to play a larger role on the global map and the present budget recognizes this. We were expecting a reduction in the excise duty, which would have supported the local manufacturers, with the potential to make drugs more affordable for Indian patients, but that has been ignored. As a whole initiatives announced for the pharma sector will spur growth in the right direction,'' R C Juneja, managing director of Mankind Pharma said.
CII national Health Care Committee chairman Naresh Trehan, said, "The steps are in the right direction, it is very positive. But it remains to be seen how the implementation of National Rural Health Mission takes place." A 21 per cent increase in outlay for health segment is certainly appreciable, he said, but added healthcare should have been given the status of infrastructure.
The proposals like cut in duty on medical devices is likely to help a number of players while increased allocation for health and anti-AIDS campaign would help major companies like Wockhardt, Cipla, Novartis in special, according to observers.