The Federation of Medical Representatives Associations of India (FMRAI) is planning to approach the Centre to float a common holding company in a bid to revive and redefine the role of ailing public sector pharmaceutical companies.
The FMRAI will chalk out details of a possible revival plan for the pharma PSUs, in its executive meeting later this month, and submit it to the government, as they feel that strengthening of public sector would be the best possible way to keep a tab on the unhealthy practices of the private sector.
They want a common holding company for all the pharma PSUs as an umbrella body to control and redefine their roles, on the lines of SAIL in the steel sector.
"The new MRP regime has pushed the prices of drugs considerably and the multinationals are misusing the existing patent laws to make huge profits. The strengthening and revival of the public sector units in the pharma sector could be answer to check this ailment," a spokesman of the FMRAI told Pharmabiz.
He said that, they had a positive response to their meeting with the Lok Sabha Speaker recently with their demands to roll back the new MRP system and to ensure that the patent law is not misused by the MNCs harming interests of the patients.
The Speaker has forwarded our demands to concerned officials and the leaders of the FMRAI were also in touch with them to further press their case. They had also organised a dharna in Delhi to highlight their demands in this regard.
There is already a proposal before the Centre to float an apex body for the pharma PSUs, to be floated under the Societies of Registration Act with an initial investment of Rs 100 crore. It is planned to rework the operations and goals of the PSUs in a bid to check prices of essential drugs and exploring the possibilities of contract bulk drug manufacturing.
There are five central PSUs and six joint venture undertakings in the sector. Except Karnataka Antibiotics and Pharmaceuticals Ltd (KAPL) and Rajasthan Drugs and Pharmaceuticals Ltd (RDPL), all other units have been in the red for a while. The Government already approved a revival package of Hindustan Antibiotic Ltd and has given a green signal for reviving the five units of Indian Drugs and Pharmaceuticals Ltd (IDPL) in a phased manner, following the report of an expert committee.