Indian pharma firms aim to offer cheaper drugs

The planned entry of Indian pharmaceutical firms into the country is aimed at selling generic drugs as low as 30% of their current prices. Indian firms are scouting around to buy a local laboratory so that they can manufacture drugs and sell them at lower prices. Indian Chamber of Commerce Philippines, Inc. President Ram Sitaldas told BusinessWorld he has been in talks during the past two months with two Indian companies interested in basing themselves in the country. Although declining to name the firms, he said these were currently looking for available laboratories to buy, as opposed to bringing in equipment and machines from India. He said he was in discussion with one local company interested in selling its laboratories, but would not divulge its name either. Mr. Sitaldas also mentioned that he has begun wooing the Indian "big-timers," Dr. Reddy’s Laboratories Ltd., Ranbaxy Laboratories Ltd. and Cipla Ltd., "to come down here and manufacture drugs in the Philippines." "Our aim is to sell not [just] 50% less, but maybe even 30% or 20% [of present prices], to supply to the poor people and to the Filipinos who can benefit out of it." The investment of the firms, he said, could reach as high as $50 million. "To put in a lab, you’re not looking at small investments," he said. Although admitting that plans were not yet final, Mr. Sitaldas said he was looking at bringing more investors into the country "within the next six months" to discuss the matter. The Philippine International Trading Corp. (PITC) has been sourcing cheaper imported drugs from India, among other Asian countries, through parallel importation, which has led to the issue of patent infringement of local branded drugs. But Mr. Sitaldas said the firms coming in would not deal with this, focusing rather on manufacturing generic drugs. "Right now, we are not thinking of bringing those [drugs] registered by the multinationals," he said. Mr. Sitaldas said at present, the two firms are already importing pharmaceuticals either through PITC or directly to local retailers, but he stressed that the cost of the drugs will lower considerably once these are manufactured here. A bill sponsored by Quirino Rep. Junie E. Cua and Sen. Manuel A. Roxas II is aimed at amending the Intellectual Property Code to ease restrictions on parallel importation. A bicameral conference scheduled for next month is aimed at reconciling the two versions of the bill before the 13th Congress adjourns. United Laboratories, Inc., which recently said it will be seeking cancellation of patents of several branded drugs, said it has not heard of the plans of Indian firms to move here. - Paul C.H. How/BusinessWorld