The report “Dr Reddy’s may sell stake in domestic formulations biz” (June 19) is the kind of depressing news that has become routine now. Multinational drug companies, according to the report, are already in talks to take over DRL. It is sad that iconic Indian drug companies like Ranbaxy and DRL will pass into foreign hands. What then will our pharmaceutical industry look like five years down the line? Whatever is not controlled by the MNCs will be reduced to contract manufacturers by the look of things. It’s a tragic fate for India which had painstakingly built up the generics drug industry over the last 40 years to become the “pharmacy of the world”.
The government must realise that unless there is a strong domestic industry, the country will be held to ransom by foreign drug giants. Urgent efforts should be made to revive public sector undertaking Indian Drugs & Pharmaceuticals Ltd (IDPL) as a joint venture with reputed private companies so that the country can be assured of supplies of basic and life-saving drugs at reasonable rates. Mainstream economists and a section of the government itself will scoff at this suggestion but it is important to note that countries that have stood up to drug MNCs, from Brazil to Thailand and Ecuador, all have state-owned drug manufacturing capacity. This is particularly important if a country wants to issue a compulsory licence to override patents in special circumstances.
Narayan Bhandarker Hyderabad
