Karnataka plans pharma policy to spur growth

Karnataka, pioneer of policies on information technology, biotechnology and a host of other industry-friendly frameworks in the last decade, is now looking at crafting a pharmaceuticals policy of its own to spur its 450-strong drug industry.

It is still a seed of a thought meant to attract good pharma investments into the State, said Dr B.R. Jagashetty, State Drugs Controller. It should start taking a shape in the coming months, Dr Jagashetty, who is working on its contours, told Business Line.

Although Karnataka is not in the same league as the drug industry hubs of Maharashtra, Gujarat or Hyderabad, it has many industries engaged in R&D, drug production and contract manufacture for domestic or top MNCs. “More investments should come to the State,” Dr Jagashetty said, adding this was the time to take it to the next level, mainly with support in the form of good infrastructure.

The units in the State generate an estimated Rs 7,000 crore or about 8 per cent of the country's pharma revenue and export around 40 per cent of it, according to an industry source. They plan to double the total turnover in about five years.

“We also need at least 100 more inspectors, compared with 23 in the State now.” Karnataka is home to biotech drugs company Biocon Ltd, generics maker Strides Arcolab, both approaching Rs 3,000 crore in yearly group revenues; Micro Labs, pure-play contract manufacturer Kemwell; Anglo-Swedish company AstraZeneca Pharma India; Anglo French Drugs & Industries Ltd; and a host of small companies developing medical devices, diagnostics and contract research. It also has the highest number of units compliant with GMP standards (good manufacturing practices) - said to be more than in Maharashtra or Gujarat.

The State Government proposed a pharma park a few years back but the idea remains on the back-burner. According to Mr Jatish Seth, pharma manufacturer, committee member and until recently long-time Secretary of the Karnataka Drugs and Pharmaceutical Manufacturers' Association, a pharma policy focussing on infrastructure for the industries would be most welcome. “In this [Bangalore] area, getting land is of major concern as the cost is prohibitive. A pharma park, for example, would be a big benefit as it came with common facilities, good roads, a common effluent treatment plant and dependable power supply,” he said.

Dr Jagashetty was also recently named to head a key five-member group assigned with revamping the Drugs and Cosmetics Act, 1940. The Act was last touched up in 2008. He said the first meeting was stalled due to last week's strike by Air India pilots and expected to get going on the reforms soon.

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