Planning Commission Sets Up Panel To Review FDI in Pharma Sector: Jena.

The Planning Commission has constituted a high-level committee headed by its member to consider all relevant aspects regarding the foreign direct investment in the pharmaceutical sector in the wake of recent take-overs and following the public apprehensions, according to Minister of State for Chemicals and Fertilisers Srikant Kumar Jena.

“The recent take-overs of Indian companies by MNCs could increase the possibility of other take-overs of Indian companies which would have impact on the Indian healthcare scenario as well as on pricing and availability of medicines in India. As such an appropriate assessment requires to be made,” he told the Lok Sabha recently.

The Department of Pharmaceuticals has requested the Department of Commerce to conduct a study on the recent take-overs of Indian Companies by the MNCs. Thereafter, the recommendation could be placed before the Economic Advisory Council to the Prime Minister and/or the Competent Authority. Department of Commerce has informed that they have entrusted the task of this study to M/s Ernst & Young, according to the Minister.

“The policy of Foreign Direct Investment (FDI) in existing Indian Pharmaceutical Companies has come in for public comments especially on the issue of takeover of existing Indian pharmaceutical companies by multinational companies. With a view to examine the issues involved in broader perspectives, Planning Commission has with the approval of the Prime Minister constituted a High Level Committee (HLC) under the Chairpersonship of  Arun Maira, Member (Industry), Planning Commission to consider all the relevant aspects,” the Minister added.

Source : pharmabiz.com