6 pharma proposals on FIPB agenda

After making way for the $1.8-billion Mylan-Strides deal last week, the Foreign Investment Promotion Board (FIPB) is set to take up six proposals, for foreign investment in the drug manufacturing sector, during its September 19 meeting.

According to the agenda of the meeting, the board would consider proposals by Shantha Biotechnologies, Kinedex Healthcare, Artura Pharmaceuticals, SD Bio Standard Diagnostics, Laurus Labs and Acebright (India) Pharma. Many of these proposals are pending with FIPB for a long time.

Last week, the Cabinet cleared one such long pending foreign direct investment proposal by Pennsylvania-based Mylan Inc. The US company had announced its plans to acquire Strides Arcolab's injectible unit Agila Specialities in February. However, the proposal was stuck with FIPB for six months, as the various ministries raised concerns over increasing acquisition of existing domestic drug facilities by multinationals. These ministries feared that such acquisitions might lead to significant hike in prices of medicines, while also creating a shortage of some drugs.