"While admitting that price control would not help the industry, the prime minister said there was a need to provide affordable medicine to the poor," said Nicholas Piramal India Ltd chairman Ajay Piramal, who led the delegation in his capacity as chairman of the Confederation of Indian Industry's national council on drugs and pharmaceuticals.
"We have assured him that we will continue to supply affordable medicine to the poor," he added.
The other members of the delegation were Nicholas Piramal India director and Council for Scientific and Industrial Research governing body member Swati Piramal, Ranbaxy Laboratories president (pharmaceuticals) Malavinder Mohan Singh, Sun Pharmaceuticals CMD and Indian Pharmaceuticals Alliance vice-president Dilip Sanghvi and Novartis India managing director and Organisation of Pharmaceutical
The delegation told the prime minister that price controls were impacting the growth of Indian pharmaceutical companies, that too at a time when their fortunes were likely to be adversely impacted with the introduction of product patents from January 1, 2005.
Any extension of price control to more drugs could seriously erode the profitability of Indian pharmaceutical companies. Late last week, 12 pharmaceutical companies belonging to the Indian Pharmaceutical Association had announced they would freeze prices at the current level till March next year.
Calling the squeeze infructuous, several other companies had pointed out that prices of drugs in the country had in fact been falling continuously in the last several years on account of the existing patent regime which recognises only process patents.
As a result, every drug was available under a score of brands. "Prices in India are among the lowest in the world. They fell 2 per cent in 2002 and 0.3 per cent in 2003," said Piramal.
