The sale of loss-making public sector units Hindustan Antibiotics Limited (HAL) and Indian Drugs and Pharmaceuticals Limited (IDPL) is likely to be put off with the new government favouring revival of these units. The Union Chemicals & Fertilizers Minister himself is known to have expressed interest in retaining the companies in the public sector.

According to sources close to the ministry, the C&F Ministry is likely to consider the revival proposals forwarded by HAL management recently.

The attitude of the C&F Ministry towards price control of drugs is also likely to undergo a major shift with the new minister known to be in favour of increasing the span of price control. Bringing down the prices of essential drugs through effective control mechanisms, empowerment of National Pharmaceutical Pricing Authority (NPPA) to effectively deal with drug price controls are all to be given top priority by the new minister, it is learnt. The ministry may also attempt to bring down the profit margins of the OTC drugs and also act against the huge variations in the wholesale rates and the MRP of several drugs.

What is yet to be known is the possible stand to be taken by the government with regard to the Pharma Policy 2002, which is yet to be cleared by the Supreme Court.

It should be noted that the Karnataka High Court while disposing the case on Pharma Policy had declared the National Pharmaceutical Policy 2002 was arbitrary, unreasonable and violated the Constitution and the Essential Services Act in so far as to the extent of price control mechanism adopted to determine under price control applicable to essential and life saving drugs.

Industry observers feel that the new government may water down the pharma policy to increase the span of price-controlled drugs.