The Foreign Investment Promotion Board (FIPB) has accepted some of the stiff riders proposed by the health ministry for multinational pharmaceutical companies trying to acquire Indian firms. However, it has rejected the ministry’s proposal to insist such companies must bring new technology and invest the necessary funds in research and development so that new molecules were developed keeping Indian conditions in mind. It has also rejected a proposed mechanism to monitor compliance of these conditions.The three pharma proposals where the health ministry’s proposed riders have been accepted and the requests cleared include the 100 per cent acquisition of Bangalore-based Pharmaceutical Ingredients and Formulations India Pvt Ltd by US company Levomed Inc and a proposal of US-based Akorn Inc to buy 100 per cent stake in Akorn India Pvt Ltd. The third proposal was of Edict Pharmaceuticals, in which the existing shareholders proposed to sell 100 per cent stake to Par Pharmaceuticals of the US.
Source: Business Standard
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