The SME Pharma Industries Confederation (SPIC) has urged the government to keep in mind the social responsibility of ensuring affordable medicines to the public while formulating and encouraging research and development in the pharma sector. It also cautioned the government not to follow the method of Western countries where only a handful of companies monopolise the sector, and instead go for Chinese model to extend more assistance to the SMEs.

In a detailed representation to the government in connection with the recent brainstorming session of R&D convened by the department of pharmaceuticals, the SPIC said the commitment of social responsibility cannot be ignored for expected illusionary benefits of the market-driven economy.

"We have a large number of small pharma units in formulation and bulk drugs. We have a large resource like universities, microbiological institutions and organizations like NIPERs. We have to take advantage of our resources by taking directions from the end users of R&D and for this, we need a chain which can join these links," it said, while stressing that the small and medium units need more assistance compared to the large enterprises.

While calling for setting up of working groups at the district and state levels, with national office in Delhi to coordinate the R&D efforts including disbursement of funds, the association said India should better go for Chinese model.

"In the developed countries, the pharma market is monopolized by around 20 companies and there is hardly any presence of SMEs. But In China and India, the market is fragmented with the presence of thousands of SMES which ensure more competitive and affordable prices. The move of China to let universities and institutions work in close interaction with industrial units with dedicated support of R&D has made it a major supplier of APIs. Therefore Indian R&D should also adjust itself on the Chinese model to make it hub of quality and affordable medicines," association vice chairman Lalit Kumar Jain said in the meeting.