Cipla urges government to support capital investment, R&D for pharma industry

MUMBAI: Pharma major Cipla has urged the government to focus on supporting capital investment, encouraging research and development and create a favourable tax regime to help growth of the pharma industry, instead of just regulating prices.

“The government should bring in attractive market conditions by supporting capital investment, encourage R&D and create a favourable tax environment,” said Cipla chairman YK Hamied.

“Instead of regulating drug prices in an already highly competitive market where prices are already amongst the lowest in the world, the government must ensure there is no monopolies but free competition in life-saving drugs segment,” he added. In his annual address to shareholders, Hamied said India is regarded as the pharmacy of the world. Pharma exports have risen from $100 million in 1980 to $15 billion in 2014 and the target for 2025 is $25 billion, he said.

Hamied said the country has the largest number of USFDA-approved factories than any other country.