Late Extra: Indian drug companies get shot in the arm

India's pharmaceutical companies and their products have been in the news these days on four counts. Three of these are positive and have done the Indian-manufactured drugs proud but one is very negative and needs to be eradicated.

The good news is that Indian pharmaceutical products are being accepted globally for their quality and affordability by end users.

The second relates to the acceptance of the growing number of Indian-manufactured drugs getting the approval of the US Food and Drugs Administration (FDA) — giving them a level global playing field.

The third — because of the near global acceptance of Indian-manufactured drugs, the scrips of the pharmaceutical companies have carved out a separate category for themselves and are posting healthy profits on the stock markets.

But, alas, the last, which is negative, relates to the manufacture of spurious drugs and their proliferation in the Indian domestic drugs market. The government and the enforcement agencies of India have been fighting this menace for the past four decades but have had only selective success.

The menace is now a subject of debate in India and there are suggestions to enact more stringent laws to deter spurious drug manufacturers — one even goes to the extent of asking for the death penalty for those caught.

The reason for bringing in the last point is that it has the capacity to negate all the good work of the genuine pharmaceutical companies which, over the years, have invested heavily in research and quality control.
Had the latter not been the case Indian drug manufacturers would have had to remain content with their domestic market and may have not won approval from such strict monitoring agencies like the US's FDA.

Drug cocktail

In the past five years the cost of anti-retroviral drugs made by Indian manufacturers and used in the care of AIDS patients have demonstrated that the three-drug cocktail can be made affordable for AIDS sufferers. The first foray was initiated in Kenya and now with the endorsement that the Clinton Foundation has accepted Indian-manufactured anti-retroviral drugs in its battle to fight AIDS, the Indian companies have got a further boost.

The Indian pharmaceutical success story, however, is not confined to the manufacture and marketing of low-cost AIDS therapy. Each day the media carries at least one item announcing the acceptance of yet another of their products being approved by the FDA.

The range is wide and the Indian manufacturers are doing their utmost to retain their success and credibility with stringent quality control standards. They know that it takes only one mistake to soil the fair name of not only their own company but of the Indian pharmaceutical industry down the line.

India's expertise and cost-effectiveness is also opening other avenues for its pharmaceutical industry.

On November 4, a European manufacturer which has an Indian subsidiary, announced that it has decided to invest over 10 million Swiss francs, a portion of which will be used to conduct clinical trials in India.

Other international drug manufacturers are also contemplating investing in India, either through their existing subsidiaries or setting up new projects with Indian partners and tapping their expertise.

Good record

For the Indian pharmaceutical industry positive recognition of its past record and achievements not just by its international peers but also by the media is a welcome change.

These attributes have to be nurtured and protected. Just one mistake can cost the industry dearly and it will take a long time to win back their hard-earned credibility.

The Indian pharmaceutical industry is now worth billions of dollars and its good fortune is a large factor which has contributed to the health of India's capital markets. It cannot afford to take any chances.

The writer is an Indian-based journalist