Alarmed over the recent developments in the pharma industry in which some of the major Indian pharma companies were taken over by the multinational pharma companies, the department of pharmaceuticals (DoP) has taken up the matter with the union commerce ministry to find a way out to ensure that major Indian pharma companies remain in Indian hands.

Sources said that the DoP had taken up the matter with the commerce ministry at a meeting held recently on the issue. The DoP has asked the commerce ministry to explore the options available before the government. As the issue involves foreign direct investment (FDI) and the country is encouraging more and more FDI in different industrial sectors, there are limitations on the options available to the department, sources said. If India initiates some steps on the issue and cap the FDI in pharmaceuticals, there will be wider ramifications at the international level, sources said.

There is fear that if the major Indian companies are taken over by the MNCs, then it will result in MNCs gaining market supremacy and essential medicines are bound to become costlier in the country. Some of the Indian pharma companies which were taken over by MNCs include Piramal Healthcare, Ranbaxy, Shanta Biotech and Dabur Pharma. And there are rumours that several other Indian companies are presently engaged in negotiations with MNCs for selling their companies to the MNCs. What is attracting the Indian companies most is the kind of fancy amount of money that is being offered by the MNCs.

Meanwhile, the Parliamentary standing committee on Health and Family Welfare led by Rajya Sabha MP Amar Singh has also asked the union Ministry of Health and Family Welfare to take up the issue with the Ministry of Chemicals and Fertilizers without any delay to come up with policy options to ensure that major Indian pharma companies remain in Indian hands.

Expressing concern over the recent developments in which some of the major pharma companies have been taken over by the MNCs, the 31-member parliamentary panel said that these developments would result in MNCs gaining market supremacy and essential medicines are bound to become costlier.