The union health ministry's recent directive to state drug licensing authorities to grant or renew manufacturing licences only in generic names will annul the growth prospects of the industry in the country, feel the pharma industry leaders in Andhra Pradesh.

The leaders of pharma associations are critical about the government’s move. “On one hand the government has set targets to increase exports of drugs and medicines, while at the same time it is restricting the industry by not granting licenses. This kind of double standards is not in the interest of the Industry. The directive of the ministry will halt new investments and it is definitely going to impact on the growth of the Industry,” opined members of Bulk Drugs Manufacturers Association (BDMA).

As the industry is already facing problems in terms of environment issues and frequent power cuts in the state, the new directive of the health ministry not to grant licences for ‘branded drugs’ is a big blow to the industry’s future growth, they said.

While sharing his opinion on the issue, Satyanarayana from Sipra Labs said, “Not granting licences to branded drugs will have a very serious impact on the growth. This move of the government is definitely not a welcome for the industry.”

Meanwhile when contacted, R P Thakur, director general, APDCA, said, “So far we have not received any communication from either the State or Central government in this regard.  We will look into the matter and take a proper decision once we receive formal instructions from the government.”

According to other sources from APDCA, the health ministry’s move is not going to affect the bulk drug manufacturers as they are generic manufacturers. Since the Ministry has given its accent to generics it may not have much impact for the Bulk drug manufacturers in the state, while the decision will definitely impact the formulation companies in the country.