[Ip-health] Ranbaxy Takeover

[Sudip Chaudhuri]

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Dear All



The takeover of India's largest pharma company by the Japanese, MNC, Daiichi
Sankyo is a significant and may not be an isolated event. I have argued in a
commentary published in the Economic & Political Weekly  (
http://www.epw.org.in/epw//uploads/articles/12447.pdf<http://www.epw.org.in/epw/uploads/articles/12447.pdf>)
that it is the result of the financial difficulties faced by Ranbaxy, which
in  turn is due to the response to the situation arising out of the TRIPS
Agreement. More such takeovers of Indian generic companies is not unlikely
with negative consequences for market concentration and prices.
Renegotiating the TRIPS agreement, at least using the flexibilities such as
compulsory licensing properly are of fundamental importance if generic
companies are to get the space of operations to survive and provide
effective competition to the MNCs.



Sudip Chaudhuri

Indian Institute of Management Calcutta

Email: sudip@iimcal.ac.in