India's new drug price control will damage pharma sector, says local Pfizer chief

The recent moves by India’s government to control the prices of all 348 essential drugs – accounting for some 60% of the domestic market - will push the pharmaceutical sector into a semi-recession, according to global drugs behemoth Pfizer (NYSE: PFE: The Pharma Letter November 3).

In an interview with India’s Business Line, Kewal Handa, managing director of Pfizer India, said that the focus on domestic pricing and uncertainty around the foreign direct investment (FDI) rules was making India an unattractive destination for multinational pharmaceutical companies.
“If you look at the growth of the pharmaceutical sector in 2010, we were at a peak around April-May, growing at around 20%. It has now come down dramatically to 13%. So, as it is we are seeing a low growth phase and with coming National List of Essential Medicines (NELM), the industry would slip into a semi-recession stage,” Mr Handa said.

FDI policy