New Delhi, Aug 14 (KNN)  In a  report titled ‘FDI in pharmaceutical sector’ the Standing Committee on Commerce has recommended that the government should make all efforts to stop takeover or acquisition of domestic pharmaceutical companies.

Explaining that the FDI policy in the sensitive sector should be dictated by public good, the House Panel called for a blanket ban on Foreign Direct Investment (FDI) in existing pharmaceutical companies.

The committee 'strongly' recommended that the Commerce Department take all measures to stop any further takeover or acquisition of domestic pharma units.

If the government failed to impose a blanket ban on FDI in brown field pharma projects, the panel chaired by BJP MP Shanta Kumar, said it would put at risk the entire health and intellectual property framework of India, especially with regard to access and affordability of medicines.

FDI in brown field pharma, the report said has encroached upon India’s generics based and adversely affected the industry.   Also, it pointed out that collaboration between foreign and domestic pharmaceutical companies has always served western markets more than the needs of the local population.

Further, FDI flow into brown field projects has not added fresh capacity in terms of production, distribution network or asset creation to the desired level.

The Committee was convinced that FDI has failed to bring about any real change in the existing pharma R&D environment as domestic companies are still to gain the competence and capacity to achieve cutting-edge drug innovation by carrying a new compound through all stages of research up to marketing.  (KNN)