International pharma companies based in the US and Europe are closely watching the extend of involvement of Karnataka based pharma companies in the multi crore scam. There are a number of pharma companies in Karnataka which are doing contract manufacturing for some of these multinational pharma companies.

The KDPMA members regretted that the presence of a few spurious drug units and the links by some agents with fake pharmaceutical manufacturers located outside the state have given a negative image to the pharma trade and industry in the state.

"It is an embarrassment for good contract manufacturing companies in Karnataka to be questioned by the global pharmaceutical companies about the quality and production protocols. However, as we are maintaining stringent quality control practises, we may not lose any orders," Suresh Khanna, member, KDPMA and executive director Kemwell Pvt. Ltd. told Pharambiz.com.

The drug manufacturers in Karnataka who have been known for maintaining quality standards have informed their global clients that their products could be tested and premises be inspected at any time.

At a press conclave held after visit to some of the leading manufacturing plants here in the Bangalore by a media team, the members regretted that with the presence of a few black sheep in the manufacturing sector, the reliable names were being affected.

"It is not uncommon to see any manufacturing sector in the country to have handful of spurious manufacturers. Their existence tarnishes the images of leading and responsible manufacturers in the business. It is unfortunate that the pharmaceutical industry is the victim of such circumstances. Let me tell you that 99 percent of the manufacturers in Karnataka are genuine and have in no way indulged in the production of spurious drugs. I don't know why we should be defending ourselves at all. There have been no accusations against us. But we wish to state that we can be approached at any time for an inspection of the premises and our only intention is to survive in the business by maintaining, ethics, quality and purity in drug manufacture, Dr. KN Subbaswami, president, KDPMA said.

Dr. Subbaswami said that Karnataka drugs administration had been considered as one among the three best in the country along with Maharashtra and Gujarat. "Those who have consciously indulged in mal practises need to be hung. The other reasons could be even accident or sabotage," he averred.

When questioned about the presence of spurious drugs in the state government hospitals, N Jatish Seth, secretary, KDPMA said that most of the government supplies were procured from drug manufacturers located outside Karnataka.

On the allegations against the drug units for the not-of-standard-quality products, V Madhusudan, executive vice president and head of global corporate research and development India, Banner Pharmacaps said that after the drugs were despatched from world class units, the storage facilities in the chemists and government hospitals were appalling. "A drug could also be declared as sub-standard due to petty problems like minute weight variations, discoloration breakage or leakages in bottles," he added.

Karnataka pharmaceutical industry which contributes around 8 percent (Rs. 850 crore) to the total export of Rs. 11,000 crore. The export from the state is expected to touch Rs. 12,000 crore by 2010.