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India should benefit from multinational attention

This article was originally published in Scrip

Executive Summary

With Takeda the latest multinational rumoured to be on the prowl for acquisitions in India, it is hardly surprising that the debate about the impact of foreign direct investment on both the indigenous industry and on patients is coming to the fore (scripintelligence.com, 30 August 2011, 24 August, 2011, 9 August 2011). Claims that such acquisitions will undermine the development of the Indian pharmaceutical industry and force drug costs higher appear misplaced. Similar arguments were made when India passed the Patent Act with opponents concerned that it would undermine the Indian generics industry. Not only did the introduction of tougher intellectual property rules not kill off the generics industry, it also helped nurture home grown innovator companies.

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