The government on Wednesday said that it has started inter-departmental consultations to look into concerns raised on takeovers of Indian pharmaceutical firms by multi-nationals and its possible impact on the drug prices. Concerns have been expressed that the recent takeovers of Indian pharmaceuticals companies by multi-national firms would result in their gaining market supremacy, affecting the prices of generic (off-patent) drugs, Minister of State for Commerce and Industry, Mr Jyotiraditya Scindia, said in a written reply to Rajya Sabha.

"The government has initiated inter-departmental consultations on how best to address this issue,” Mr Scindia said. Domestic pharma companies have raised concerns that the takeover of Indian companies by foreign firms could lead to a situation of over-pricing of drugs and marginalisation of homegrown firms. This view was also endorsed by the Health Ministry.

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