Drug firms facing challenging times due to price control: Cipla
With the tightening of new product registration procedures, the approval time to market newer products has also been significantly impacted
New Delhi: Drug companies are facing a tough environment due to the government bringing more products under the price control policy as also tightening of registration procedure that has impacted time to market newer products, Cipla Chairman YK Hamied has said.
"The environment for the domestic pharma companies remains challenging with more products coming under price control, and other pressures such as government legislation to ban certain fixed dose combination drugs," Hamied told shareholders at the company's annual general meeting (AGM), as per a regulatory filing today.
Moreover, with the tightening of new product registration procedures, the approval time to market newer products has also been significantly impacted, he added. "We do hope that the government will look into some of these challenges pragmatically to ease the operational environment for the pharma industry," Hamied said.
The domestic pharma sector looks after the healthcare needs of India as well as many other countries, he added. "We are a major producer and supplier of affordable drugs worldwide.
Many countries are dependent on India for their drugs. Now that our Indian pharma industry is at the forefront of healthcare, the government should be fully supportive," Hamied said.
Calling for in-licensing system for patented and monopoly drugs developed abroad, Hamied said Cipla will continue its efforts to offer patients affordable essential medicines.
"India needs a pragmatic in-licensing system for patented and monopoly drugs developed abroad. Your company, is more than willing to pay a reasonable royalty to the originator, to manufacture and/or market newer drugs in the country and also leverage our reach in the developing world to stay true to our mission of enhancing access and affordability," he said.
Cipla is keeping all avenues open for appropriate licensing agreements with other global companies to make patients better secured for affordable treatment, he added.
"Unfortunately for the nation in 2005, our government under intense international pressure changed the Patents Act, re-introduced product patents and backdated these to 1995. This change has already led to high prices of many vital drugs sold in India under monopoly," Hamied said.