Non-tariff measures hitting pharma cos: Experts

Ahmedabad, Feb 2: Growth in pharma sector has been 20 per cent, while in contrast IT sector has shown an annual growth of 40 to 50 per cent per year, said chief corporate affairs advisor to Zydus Cadila Sunil R Parekh.

Addressing the media at a seminar organised by FICCI and Indian Council for Research on International Economic Relations (ICRIER) here today, Mr Parekh said there has been regulation changes in 2006 and patent changes during 2005. Today with creation of tax havans in places like Himachal Pradesh and Baddi in Sikkim it has led to lots of distortions which has hit the pharma sector, especially the SMEs.

The most critical non-tariff measures (NTMs) affecting Indian pharma exports to the US, EU&GCC countries is the perceptions and prejudices that ''Indian companies are not good companies,'' said Dr Suparna Karmaka of ICRIER.

She said according to the ICRIER findings, the pharma sector faces barriers like price controls, price distribution, reference pricing, taxation and government regulations and a forthcoming ''chemicals registration requirement'' under ''REACH''. The other NTMs that are causing concern are antidumping duties and licensing requirements, the latter particularly in the GCC countries.

In the US markets, there are certain regulations and 12 to 13 basic requirements that need to be meet. There are USFDA listed requirements for entry and FDA regulations are very strict and has to be adhered to. FDA personnel have extensive discretionary powers, she said.

UNI