Proliferation and fragmentation of production causes a cut-throat competition for survival,often leading to fatal consequences not only to the new entrant, but also to the original successfull player. It is unfair, at this juncture, when the government itself is unable to help itself and is largely looking into the industry for financial help, to expect any help from the government. The industry has to help itself. Unfair practices in the industry must be curbed by collective action and self-restraint. The bulk drug industry must develop new technology, new products, new markets and most importantly, new strategies. This is the only way to revive the market.

What are the additional sops required to develop a vibrant R&D in India? Can you suggest any new methods that other countries use to develop their R&D?
The government is almost helpless to offer sops. However, there is a total awareness at all levels of the government, of the need for encouraging research. The government is willing to support R&D. However, the government is facing major financial constraints. The government has alsoexpressed the view that R&D sops by way of subsidies or rebates are likely to be misused. Experts in the government, therefore, have suggested post-performance sops for R&D (result-oriented) rather than across-the-board assistance for Directorate of Scientific & Industrial Research-approved R&D. Any new process, new mechanism of action, new production, entry into virgin areas of operations etc., are identified as eligible for sops. Of course, a new drug invention will be the ultimate, but that kind of achievements will be very few.

Exemption from drug pricing control order (DPCO) should be available to DSIR-approved R&D companies spending more than five per cent of their turnover on approved R&D projects. Exemption from DPCO should also be available to manufacturers exporters with more than 50 per cent of total turnover.

One major area of encouragement the industry deserves is in commericialisation and marketing. Brand equity assistance marketing abroad is a major area which the government should considerseriously. The international registration (for export) costs are very high. This is one area where the government should help. Such help will lead to an increase in exports. Another area that the government needs to pitch in to help increase R&D and exports is by having balanced practical budgets. Overinflated revenue targets, create pressure on revenue collectors who in turn squeeze the industry into posting with the last penny in their banks, creating serious liquidity problems thereby affecting commercial operations like procurement, production, exports and R&D.

In the long term, by such extreme distress revenue measures, the government is destroying upcoming industries and the economy itself.

The NIH (National Institute of Health) supports research extensively in the USA. But NIH has funds at its disposal. We cannot compare ourselves with countries like the USA. Our health budgets are shrinking while our population is soaring. The government can encourage Indian and international financialinstitutions and banks to seriously step into supporting pharma research in India on a long-term basis with soft loans of five-year moratorium with periodic (frequent) monitoring and result-oriented profit sharing. One suggestion from the industry is for a 200 per cent weighted deduction for R&D projects monitored by DSIR, through R&D approved by DSIR.

Do we need changes in drug pricing control order (DPCO) and drug pricing equalisation account (DPEA)?
The pharma industry is pleading for life without DPCO. In the Indian context, this may remain a dream. When drug price controls are a world phenomenon, it will be unfair to expect total abolition of Drug Price Control in India. IDMA and Organisation of Pharmaceutical Producers of India (OPPI) has made a representation to the government to have a gradual dilution of DPCO. It is suggested that price control should eventually be restricted to monopoly drugs, drugs which are marketed by only one company or when the market share of a drug is more than 75per cent for a single brand or company.

DPEA is a dead concept which in 1979 was intended for compensating the high cost of indigenous production under government compulsion to some units. "Dual pricing" and "Pool pricing" existed under the following circumstances