"The Central Government would announce the draft of the Pharmaceutical Policy 2005 within a week, and one of the major highlights of the policy would be to impose a 2 % health cess to mobilise Rs. 6000 crore to implement a health insurance scheme for families below poverty line (BPL)," said G S Sandhu, joint secretary, Department of Chemicals and Petrochemicals, Government of India.

Addressing the 44th annual day celebrations of the Indian Drugs Manufacturers Association (IDMA), today in Mumbai, Sandhu said that the new pharma policy would comprehensively address the aspirations and demands of the pharma industry, at the same time taking care of the needs of consumers as well. Pricing of medicines is only a part of the policy and will aim to put in place a national list of essential medicines 'undisturbed at least for the next five years'. The draft of the policy will be announced and will give adequate time of 20 to 25 days for the industry to comment on it.

At present 26 per cent of the families are below poverty line and the health cess could be utilised to implement a free insurance scheme for this 5 crore odd population. The government had planned a similar universal health insurance scheme two years ago, but it was a non-starter as the BPL families had to contribute Rs. 200 out the premium of Rs. 365. The cess would help to implement a free insurance scheme covering the entire families below poverty line, informed Sandhu.

Addressing the gathering, Ramesh Kumar, commissioner, Maharashtra FDA said, "It was sad to find only 30 per cent of the pharmaceutical units in the state conform to the Schedule M requirements despite adequate time of many years was given to the industry. This includes units of many large companies. Industry associations like IDMA should take the initiative to ensure the companies comply with the rules at the earliest, as the enforcing agencies have to abide by the rules."

According to Dr. S P Adeshera, commissioner, Gujarat, most of the units in the state have conformed to the Schedule M requirements, as the state FDA had to cancel the licenses of only about 30 units. The state administration took a strict stand since 1st July and this was instrumental in ensuring compliance to the rules.

He noted that the idea of quality circle system, wherein a WHO GMP complaint factory in a particular area helps about 8-10 units in the same locality to comply with the rule, was implemented effectively in Gujarat. This also helped to cut expenditure for modernisation by a minimum 20 to 25%, as non-complaint units could purchase equipment in bulk at reduced prices.

In his keynote address on the theme 'Future of Indian pharmaceutical industry', K G Nair, renowned cardiologist, said that the Indian pharma industry should aim to achieve 50 per cent of the drugs exported from India. Long-term vision is required and the Indian pharma industry should discard its present role as a trader of medicines to the world. About 100 drugs, including 20 blockbusters, are going off patent in 15 therapeutic areas and India has a huge opportunity to tap this sector. Biotech and vaccine development are other two areas India can achieve strength.

"We have assets like skilled personnel, in-house availability of resources, cost effective production, untapped potential of traditional medical knowledge, vastly improved communication and transportation systems etc. However, the pharmaceutical industry have weaknesses like lack of transparency and ethical marketing methods, shabby promotional schemes like bribing the physicians, too much of copy cat versions instead of original products, lack of willingness to invest in R&D, weak documentation and Pharmacovigilance etc. The pharma industry should invest to set up institutions for clinical trials; GCP centres of excellence and should tie up with foreign universities," Nair said.