Health Min calls for tighter pharma FDI norms

Health Minister, Ghulam Nabi Azad has called for tighter pharmaceutical FDI norms, reports CNBC-TV18's Rituparna Bhuyan quoting sources.

The health minster has written to the Commerce Minister seeking tighter pharmaceuticals foreign direct investments (FDI) norms. In the letter he said, that he was concerned over the takeover of Indian pharmaceutical companies by multi national companies (MNC) and sought for the Pharmaceutical FDI norms to be revisited immediately from auto to the FIPB route. These measure, he impressed, were essential in order to make affordable medicines accessible.

Health Min calls for tighter pharma FDI norms

There have been six pharmaceutical takeovers between August 2006 and May 2010 valued at around USD 10.45 billion.

The minister has also said that there is no need for rigid Compulsory Licensing (CL) norms. The CL allows non-patent holders to produce and market drugs. The DIPP paper however, has sought views on Compulsory Licensing.

The Minister is of the view that the CL should be issued in case of anti-competitive practices and that there should be no bar in private channels distributing CL products on actual cost basis.