After a series of recent acquisition of domestic pharmaceutical firms by Multi-National Companies (MNCs), many small and medium drug makers have decided to seek help from the government against this spate.

Recently, Abbott Labs has acquired Piramal Healthcare which has raised concerns among pharma Small and Medium Enterprises (SMEs) who fear drug prices to rise in future.

The SMEs has around 6,000 units, and contribute 40% of the Rs. 50,000 crore of pan-India drug production and also accounts for 40% share in the exports.

Two days earlier, SME Pharma Industries Confederation (SPIC) has written to the ministry of state, chemicals & fertilisers, the South India chapter of the Indian Drug Manufacturers' Association (IDMA) and will also approach the department of pharmaceuticals and the ministry of health & family welfare within a week time.

Likewise, the Maharashtra Small Drug Manufacturers Organisation of India (MSDMOI), West Bengal, Small Scale Pharmaceuticals Manufacturer's Association (WBSSPMA) and IDMA, Gujarat, are also mulling over to take the issue with their respective state government.

The Drug Associations are concerned that the rising number of MNCs and the scale of their operations might influence the government policies that would ultimately lead to rise in the prices of medicine for the ultimate consumers.

Moreover, the health ministry is eyeing to call for a meeting of the pharma industry to discuss the issue of the increasing acquisitions of leading Indian pharma companies by MNCs.

Since 2008, the market has witnessed acquisitions of Dabur Pharma by Fresenuis Kabi, Shantha Biotech by Sanofi-Aventis, Ranbaxy by Daiichi Sankyo, and Piramal Healthcare by Abbott Labs.

SPIC in its letter stated that - as the big Indian firms are being bought out by MNCs, the market share of 6 MNCs alone has surged by a massive 25 %. The letter stated that the latest Abbott deal worth Rs. 17,000 crore, cannot be recovered in less than 25 years unless prices of medicines are increased, which will bring burden for the consumers.