Social Scientist. v 22, no. 256-59 (Sept-Dec 1994) p. 127.


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INFRASTRUCTURE DEVELOPMENT IN HEALTH CARE 127

Table 3

Comparative Contribution of Different Sectors in Production of Different Therapeutic Group (for top 120 products) in Rs. crores

Total Foreign Sector (%) Indian Sector (%)

1. Total Turnover 1357.97 (For top 120 products)

2. Essential Drugs*

2.1 Cardovascular 21.93 29.60 70.40

2.2 Antibiotics 383.22 39.75 60.25

2.3 Antf Bacterial 107.79 0 100.00

2.4 Antf T.B. 62.21 12.68 87.32

2.5 Anti Parasitic 23.56 29.00 71.00

3. Simple Remedies, Vitamins, Cough Syrups etc.

3.1 Rubs & Balms 26.2 74.08 25.92

3.2 Cough & Cold Prep 58.90 77.78 22.22

3.3 Gen Nutrients 26.45 100.00 0

3.4 Vitamins & Minerals 117.22 100.00 0

3.5 Topical Ointments 53.25 100.00 0

3.6 Anti Inflammatory & 110.96 81.94 18.06 Analgesic

Source: Calculated from ORG Retail Survey, Dec. 1992 * Criteria for essentiality is a rough iteration

The new policy dismisses the role of the public sector and in fact talks of further denuding it. Let it not be forgotten that it was the public sector which started production of vital drugs like antibiotics in this country, which led to drastic fall of drug prices, hitherto marketed only by MNCs. Deliberate neglect, mismanagement, corruption and sabotage at various levels has brought the public sector to its present pass. Instead of thinking about measures to revitalise it, the government wishes to abdicate its responsibility. Today when the global pharmaceutical industry is poised for a new revolution with the help of biotechnology, only the public sector has the capacity to compete with MNCs and ensure a self reliant growth. No company in the private sector has either the inclination or the will to make the kind of investments necessary to keep pace with technological developments in frontier areas. Ultimately the demise of the public sector will write finis to the whole indigenous drug Industry.

Steps to encourage R&D in the drug industry, mentioned in the new policy, are welcome. But mere pronouncements cannot stimulate R&D efforts in a climate where the industry spends a mere 1-2 per cent of its turnover on R&D; and indeed most of the R&D carried out has very



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