Let all pharma M038;As be cleared by CCI: Plan panel group

8220;We need a filter definitely8230;because we want to be sure that drug prices don8217;t go out of control as a result of any monopolistic market,8221; Maira told reporters.

He said the Competition Commission of India CCI should be a better gateway than the FIPB,8221;considering that the FIPB is an old and not a transparent process8221;. Besides,an oversight by an anti-trust body is in vogue in several countries like Japan and the European Union,he said.

Another problem with the FIPB,an inter-ministerial body of senior officials is that once a proposal is cleared,8221;it cannot go further8221;. On the other hand,CCI is a 8221; transparent and pretty sophisticated instrument,8221; Maira said.

The Planning Commission expert group,comprising officials from different ministries held exhaustive discussions on changing dynamics of the Indian pharmaceutical industry and prices of generic drugs,following a spate of acquisitions of the domestic firms by foreign companies.

Some sections in the government like the Health Ministry have suggested that the foreign direct investment FDI should be capped at 49 per cent in the pharmaceutical sector.

However,the Finance Ministry is opposed to the idea and does not want to roll back the policy of 100 per cent FDI through an automatic route. The Industry Ministry,is also for retention of 100 per cent FDI but wants all the deals to be scrutinised by the FIPB.

The recent buyouts of the Indian firms by multi-national firms included takeovers of market leader Ranbaxy Laboratories Daiichi Sankyo of Japan,Shanta Biotech by Sanofi Aventis of France,Piramal Health Care by Abbot Laboratories of the US.

Also,Matrix Lab and Orchid Chemicals were bought over by

Mylan Inc and Hospira of the US,respectively. Dabur Pharma was acquired by Fresenius Kabi of Singapore.

Under the present CCI dispensation,the watchdog clearance is required only for the Mamp;As where the parties to the acquisition have assets of more than Rs 1,000 crore or turnover of more than Rs 3,000 crore.