Pharma M038;As: MNCs under scanner

8220;The government has initiated inter-departmental consultations on how best to address this issue,8221; Scindia said.

Domestic pharma companies,spearheaded by the Indian Drug Manufacturers Association and Indian Pharmaceutical Alliance,had raised concerns that the takeover of Indian companies by foreign firms could lead to a situation of over-pricing of drugs and marginalisation of homegrown firms. This view was also endorsed by the health ministry.

In 2008,Japan8217;s Daiichi Sankyo acquired a majority stake in Ranbaxy Laboratories,while Abbott Laboratories acquired Piramal Healthcare8217;s domestic formulations business last year.

The Department of Industrial Policy and Promotion DIPP,a nodal agency responsible for FDI-related matters,had sought stakeholders comments on its discussion paper on compulsory licensing.

8220;Stakeholders have made suggestions to address these concerns. The suggestions include imposing a cap of 49 per cent and shifting FDI in the pharmaceutical sector from the automatic route to government route,8221; he said.

DIPP too has raised concerns over the growing dominance of multinationals in the sector.

Currently,100 per cent foreign direct investment FDI is allowed in pharmaceutical sector through automatic route.