Biocon chairperson and managing director Kiran Mazumdar Shaw today raised concerns that the new government's intention to bring down prices of essential drugs by 25-40 per cent could deter manufacturing of such medicines by companies.

After taking charge, Fertilizer and Chemicals Minister Ananth Kumar had stated that he would talk to pharmaceutical companies and try to bring down prices of essential drugs by 25-40 per cent.

"Minister Ananth Kumar's mandate to further reduce drug prices can potentially deter quality drug makers from manufacturing essential drugs," Shaw said on the micro blogging site Twitter.

She further said the minister ‘must factor cost of quality systems else you will get poor quality of cheap drugs’.   She stressed that unless pharma sector is spared from multiple and conflicting regulations it will not realise global leadership potential.

"Minister Ananth Kumar should make right to healthcare a reality through large scale drug procurement of essential drugs not through forced rebate," she added.

Pharmaceutical industry bodies such as IPA (Indian Pharmaceutical Alliance (IPA), IDMA (Indian Drug Manufacturers' Association), however declined to comment on the issue stating, "it is too early to comment".