Indian Pharmaceutical Alliance (IPA), the association of domestic pharma majors has voluntarily decided to freeze the prices of drugs manufactured by its member companies till March 31, 2005. The decision was conveyed to the Union Minister for Chemicals and Fertilizers Ram Vilas Paswan by a 13-member delegation that met the minister here on Friday.

The decision of the pharmaceutical majors has come in the wake of Paswan's firm decision to reduce the prices of drugs in the larger interest of the consumer. The delegation is known to have conveyed the apprehensions of the industry with regard to the plans to increase the span of price control to the minister. The delegation was led by H F Khorakiwala, chairman of Wockhardt Group and had representatives from all member companies. Dilip S Shanghvi, chairman & managing director of Pharmaceutical Industries Limited is the vice president of IPA.

According to IPA figures the member companies together account for 30 per cent domestic market share.

The IPA, initially formed by eight national companies in November 1999, has now ten companies in its fold which includes, Sun Pharmaceuticals, Cadila Healthcare, Torrent Pharmaceuticals, Dr Reddy's Laboratories, Unichem Laboratories, Lupin Laboratories, USV Limited, Ranbaxy Laboratories and Wockhardt.

The avowed objectives of IPA are to partner with the government in the evolution of a patent regime that will on the one hand meet the TRIPs obligations and on the other serve national interest; engage the government in constructive dialogue to move to price management from price control regime for the benefit of the consumer; and work with the government in progressively upgrading regulatory provisions, procedures and standards for harmonization with those of the developed markets.

The collective R&D spend of IPA comes to about Rs 500 crore which accounts for 90 per cent of the total private sector spending in pharmaceutical research and development. These national companies' exports of drugs and pharmaceuticals are estimated at Rs 4,500 crore, that is more than one-third of the country's exports of drugs and pharmaceuticals.

With the domestic drug majors leading the way, other pharmaceutical companies are likely to come out with similar voluntary announcements to prevent the Union Minister from going ahead with his plans to expand the span of price control.