Deliverd Extempore

ADDRESS BY SHRI K.R.  NARAYANAN, VICE PRESIDENT OF INDIA, AT THE NATIONAL SEMINAR ON BULK DRUG INDUSTRY :  EMERGING GLOBAL CHALLENGES

JUNE 6,1994                  

Hon'ble Minister for Commerce and Fertilisers, Shri Ram Lakhan Singh Yadav, Shri Chandrasekhar Reddy, President of the Bulk Drugs Manufacturers Association, distinguished representatives of the pharmaceutical industry and friends,

I am delighted to be here this morning at the inauguration of the National Seminar on Bulk Drug Industry :  Emerging Global Challenges.  You are holding the Seminar at a very appropriate time.  With the advent of the new GATT regime, the bulk drug industry is facing very critical challenges with the new liberalisation and the expansion of trade involved in the new GATT system.  There is no doubt considerably enhanced opportunity for the pharmaceutical industry and the bulk drug industry for trade and commerce.  At the same time it is faced with the major task for restructuring itself scientifically and technologically, improving the quality of the drugs produced, becoming competitive in the world market and in fact in adjusting to some of the provisions of the new GATT system. 

As you know, there have been considerable controversy about the impact of the Dunkel proposals and now what has been incorporated in the GATT Treaty. The impact of this on the pharmaceutical industry in India, and these challenges are well‑known.  Both your President and the Hon'ble Ministeer have touched upon this.  But the crucial challenges are really, first of all, in attracting sufficient investments to this industry so that an industry which has already become almost enormous considering the levels from which it started, needs investment injection on a massive scale in order to cope with the intense competition in the world markets.  At the moment, as your President has mentioned, the Indian bulk drugs and the formulations have a very good market in the world.  The export figures are about 850 to l000 crores of rupees.  But this constitutes only 1 per cent of the world market. Therefore, in relative terms we are still a very small player in the international market for drugs. 

But we have great opportunities and scope for development in the future with our scientific base, with our technological skills and with the infrastructure that has already built up in the pharmaceutical industry, it should be possible for India to carve out a much greater share of the world market in drugs.  For this we need, first of all, upgradation of existing technologies in the bulk drug industry and also introduction of new technologies.  It is a matter of great regret that, as a nation, for scientific and technological research, we have devoted only a very tiny portion of our GNP so far.  It is below 1 per cent, 0.9 per cent of our GNP going to scientific research and as far as the bulk drug industry is concerned, I think, it has been already pointed out that only about 5 or 6 per cent or less than that of the over all turn over ploughed back for research purposes, while in countries like the United States about 15 per cent of the turn over is to be devoted to research and development in pharmaceutical industries.  This is really a challenge to us, how to upgrade our technology, how introduce new technology into our drug industry.  We are faced with some of the provisions of the new GATT regime which are not very helpful to us in this regard.  Even though, I think, it is possible for us to overcome these facts by our own efforts.  There has been considerable discussion in the country about, transition period, from process to product development provided for in the GATT Treaty of 10 years.  You have mentioned here that for developing a new molecule, it takes 10 to 15 years and about 600 crores worth of rupees investment.  If that is so, certainly this 10 years period, for this restructurring of our research system, producing going from process research into basic research is indeed a very difficult task. 

But I am sure, it should be possible for us to overcome this difficulty.  Since you are involved in process deveopment, we have not applied our mind seriously to basic research in pharmaceuticals.  We have the capability, we have the scientific and technical personnel, we have the laboratories in our country for doing such basic research.  It is only that we have not provided enough funds.  I feel that there are limits for governmental funding in these sectors.  I am not arguing that Government should not give considerably more funds for basic research, what Government can do more effectively is to re‑orient its research system and the function of its laboratories, establish meaningful relationhship with industry so that the technologies we have already developed can be applied for industrial purpose including development of new drugs and improved drugs for our own people as well as for exports.  So far, the private industry has spent very little on research whether it is in pharmaceuticals or any other field of industry.  Some of the big houses certainly have established research and development institutions but even in these their percentage of funds is ploughed back into research and development has been very negligible.

Today, we are in the era of liberalisation, we are in the era of dominance of private enterprise in our country, and therefore, the private enterprise should realise and it has an immense responsibility to contribute to research and development in their own industries and in the country as a whole.  There are of course other difficulties in the new GATT regime.  But I am sure, all these we can overcome with our own efforts and by attracting investments from abroad, by entering into collaborations with many of the multi‑nationals who find that the Indian climate is attractive enough for them to come into our country with investments and with technology.

There is no lack of talent, I said, in our country.  I recall that as early as l922 or l923, an Indian doctor, by name, Subba Rao went to United States.  He went to Harvard.  When he joined Lederle laboratory and he invented the oriomycin, which is a common name.  It was around middle of l920s.  There is a very interesting speech.  When the American Ambassador, Mr. George Alan made at Bombay.It was in l95l or l952 while he was opening a branch of the Lederle laboratory at Bombay he said and I am quoting, "For countless centuries, your country was a source of the world's drugs and spicies.  It is high time, the West to repay its debt to you to regain your rightful place in the world, in this field." This was the perception of the US Ambassador in the early l950s.  India had contributed tremendously to science and technology and indeed, specifically to drugs inh the earlier period.  He was recalling the contribution made by Dr.  Subba Rao and saying that it was high time that the West pay back to us something of it.  But unfortunately, today far from paying back, we are facing immense difficulties in technology transfer from the West to our country.  Something of course comes. 

But as far as high technologies, some of the relevant technologies for us are concerned, it has become difficult.  Therefore, there is no gratitude or memories as far as such contributions are concerned in the world and we have to produce people like, Subba Rao.  Today, in our country for doing jobslike this, which I think is not very difficult at all.  I read the other day that one of our prominent scientists said that during the 200 years of the history of Western medicine in this country, India has not made a single contribution which has changed the course of medicine in the world.  In other words, in the medical field India's contribution as far as allopathic system is concerned has been almost negligible.  We have not succeeded in creating, inventing any new molecule. Even the impressive figures given by you of the quantity and of the value of bulk drugs production in this country is not entirely based on Indian technology.  I think, most of it is the technology we have got from other countries and even a good bit of the materials which go into the bulk drugs are also imported.  Therefore, there is greater need in this country for etablishing a greater, original scientific basis for production. 

It need not always be that we should invent afresh.  Things are invented.  We can get it from outside but in the pharmaceutical field, in the drug field, there is great scope for developing new products which are scientisits and our doctors, all sitting together, can help in this process.  As the Hon'ble Minister has mentioned, the Government has been doing a great deal in helping research and development in the pharmaceutical sector.  We are establishing a National Institute of Pharmaceutical education and Research in Chandigarh.  I hope, it will do some very good relevant work in the field of basic research in drugs and it has also been suggested that we should adopt the consortium approach for research development.  Several pharmaceutical industries can get together and invest money for research and development so that by collective efforts, by the pooling of resources, they can make a contribution for producing new drugs and for improving existing drugs.

Reference has been made to the application of bio‑technology, to pharmaceutical research.  I think, there are scientists sitting here, who are familiar with the importance of bio‑technology for medical research.  Indeed, it is, first of all, one of the most environmentally friendly things to do. It is energy saving and it will produce efficiency and high degree of competitiveness for our drugs in the world markets.  We have a very considerable pool of bio‑technologies in our country.  Only that their efforts have to be concerted to specific fields of research for producing specific drugs and sufficient funding also must be provided for this.

Another important thing, and reference has been made to it, is the indigenous system of medicine in our country.  As far as the modern scientists and allopathy doctors are concerned, so far they have not really taken sufficient interest in doing research into some of the indigenous systems of medicine.  This system whether it is Ayurveda or Homeopathy, which is also not indigenous.  Nevertheless, there is theory that Homeopathy also developoed from Ayurveda and in any way it is widely practised in India.  Today, in fact, the Western Scientists have suddenly realised the importance of the wealth of medical experience that is available in systems like Ayurveda.  They are eagerly trying to get our herbs, our medicinal plants, utilise our experience and do research with all the money they have at their disposal and we would find that some of the medicines well known to us and traditionally maybe somewhat crudely used in this country today, could be re‑discovered or re‑invented as patented medicine which we will have to buy at high costs and which because of the patenting we will not able to develop ourselves later on. The science of Ayurveda and practice of Ayurveda is replete with hypothesis and with propositions which should be of interest to scientists. 

No scientist can ignore empirical experience of centuries and any one with scientific curiosity should try to examine why is that such and such herb, or a medicine made out of such and such herb could cure a certain disease.  Ultimately this may not be scientific in the modern science of the world, but this has been happening.Therefore, it should excite the curiosity of scientists, and I think the origin of science is in this curiosity and to try to find out what is behind this empirical phenomenon.  If we systematically and seriously bring together the modern scientist and the Ayurvedic practitioners, I think, we will be able to produce new drugs of very great value and medical efficacy. We will be able to patent them and make them a very rich source of foreign exchange for us.  If we do not, then, there is a great danger of this traditional knowledge that we have, being picked by the others who have greater scientific curiosity and who has more funds to utilise for research and development.  This is already happening.  You all know even some of our laboratories already produced many of the Ayurvedic drugs and they are very common in use.  So, first of all, we have to abandon this, shall I say, somewhat slavish attitude to the allopathic system that we somehow have developed, without as I said, making any contributions for 200 years to this allpoathic system ourselves. 

Therefore, we should apply the modern science for examining, analysing and refining the medical products which we use in our country.  In fact, the statistics show about l0 per cent definitely better than in the rest of India.  The average life expectation is about 70 to 72 years in Kerala.  Infant mortality has come down very drastically.  We have western standards already.  One of the factors may well be the access to medical care which has been provided in the rural areas not only by large distribution of primary health centres but by Ayurveda and Homeopathy, which are cheaply available for a common man.  So, I think one of the things we should take up very seriously, is research into the Ayurvedic system.  I know personally some doctors, Ayurvedic physicians who have developed drugs for cancer and some of them are working for drugs for AIDS, but these are all individual enterprises which are not very effectively supported by Government or by any big business houses.  If they are really supported, we may well come up with some new remedies to some of the new diseases for which the entire world is struggling to find remedial drugs.  So this is a rich field.  We have to explore and that would be an original contribution by India in consonance with the rich tradition of thousands of years, a contribution which we can today make to world medicine.

 I should like just to say one more point before I close.  Drugs are produced for profits, for sales.  But fundamentally drugs are for the people. The whole rationale for inventing these new drugs is to alleviate human misery and to serve the people.  Exports are important.  Of course, profits, there must be so that people invest in making these drugs.  But their very purpose is for giving succour to the human being.  We need in India may be some time misled by the illusion of a huge middle class of 100 or 200 million who constitute the big market where you can sell.  No doubt.  But there are about 600 700 million more who do not belong to this elite group and ultimately it is their needs, we have to pay attention to.  The market, today, is flooded with all manner of drugs.  I read the other day that many of the cough mixtures and cold elixivs, these are all really bogus things.  It produce nothing expect some profit for those who provide them in the market.  As one authority said that twice as much money is spent on promoting drugs than in doing research for drugs.  The money that is spent on the promotional effort is twice that of amount spent for doing research and development in drugs. And, therefore, it is a way of appealing to the people, not always rationally. I think, one scientist from Britain said that drug promotion industry is, he said, it is truth, half truth and nothing like the truth.  So these are the methods adopted for promotion. 

I think, naturally in business promotion is very important.  But even more important is the substantive work that one does in terms of research, development for making the drugs of high quality competitive in the markets and which will really cure persons who take them, who buy them.  The World Health Organisation, had every year, I think, they have been for many years when the World Health Assembly has been meeting, recommended that for developing countries, particularly, we do not need hundreds and hundreds of drugs and they had categorised about 217 essential drugs which are needed for a country like ours.  Ours may be slightly different because we are developing countries in one sense.  In another sense we have a huge section of the people in the developed sector also.  May be slightly different.  But basically about 217 drugs which they have recommended would serve the purpose of our people for medical care and almost all these drugs are not patented.  They can be freely manufactured, and therefore, they could be made cheaply available to the people in adequate numbers .  I think this is something also we should look into whether our drug industry can concentrate on these essential drugs which has been identified by the World Health Organisation and which would have sales among the millions of people we have in our country.  Therefore, it would not be at the expense of your profits that this type of production will take place.

I am very happy that you have invited me for this inaugural function and I am sure that your seminar will discuss all this and other related questions concerning the drug industry and also the people's health so that we face up to the challenges adequately in this new era of GATT regime. 

Thank you.