Updated on 15 August 2013
The report has expressed fears that MNCs can change or tweak the product mix and can go from producing generics into branded or even more expensive patented medicines. The report said once a foreign company takes over an Indian firm, it gets the marketing network of the major domestic companies and through that it changes the product mix and pushes the products which are more expensive.
The report expressed deep concern over the spate of M&As and said the real danger of the 100 percent FDI is the decimation of competition as well as capabilities. The Committee cautioned the government to remain vigilant and recommended establishing mechanisms to prevent increase in prices of medicines.
The report suggested that to ensure availability of essential drugs to the common man, all forms of production, pricing and distribution of pharmaceuticals have to be effectively monitored by the Department of Health and Family Welfare themselves or through regulations or through an independent regulator.