The fight between the small and the big in the pharmaceutical sector is set to attain new dimensions with the small scale units, struggling for survival, planning to demand 300 per cent maximum allowable post-manufacturing expenses (MAPE) and inclusion of the entire gamut of the sector under price control regime.

Peeved by the lobbying of the big players on the issue of withdrawing the excise exemption in the excise-free zones which they viewed as their only possible lifeline for survival, the small scale sector has decided to take the fight into rival post by demanding hard steps which the big industries would not like to see.

Leaders of the small scale sector had already held a couple of meetings with Agriculture Minister Sharad Pawar, who is heading the GoM on the national pharmaceutical policy, with these demands. The Minister is learnt to have assured them a one-hour formal meeting to discuss the matter in detail.

This will also be a lost opportunity for the small players whose opinions were not taken into consideration by the GoM so far during their interactions with the industry representatives.

"The main thing we are going to raise is the stalled move to restrict the excise exemption only to the contract manufacturers who are manufacturing under on own licence in the excise-free zones. Notwithstanding the positive stand even by the Prime Minister, the move is stuck in the Finance Ministry now. Now the reason for the same is said to be the announcement of elections in Himachal Pradesh which also has excise-free zones," a senior leader said.

However, what will be going to annoy the big players more will be the stand of the small industries on the MAPE on the manufacturing cost. The new policy has provision to increase the MAPE from the current 100 per cent to 150 per cent. The small scale units now would demand 300 per cent MAPE.

The leaders when they meet Pawar formally soon would also ask for covering the entire gamut of drugs under the DPCO and bringing a blanket cover of price control mechanism. It is going to be highly disturbing for the big players who have been already fighting with tooth and nail against increasing the price control mechanism from the present 74 drugs to 354 essential drugs.

The stage is set for an intense fight between the small and big in the industry over the coming days. Because, the small scale units outside the excise-free zones feel that they were already pushed to the wall and they had nothing lose in their fight for survival.

As per the proposed policy, MAPE, now 100 per cent over manufacturing cost, would be revised to 150 per cent in general and 50 per cent additional MAPE for R&D intensive companies. For the existing 74 drugs under price control, MAPE would remain at one year to avoid a sudden increase in prices.