Only those foreign companies which produce saline, anti-cancer drugs, vaccines, contraceptive and drugs used by people living with HIV/AIDS can get entry into the Nepalese market. [break]
The Department of Drug Administration (DDA) said new foreign manufacturers that get registered in Nepal will not be allowed to import general medicine. Since 2007, the office has been refusing to register new foreign pharmaceutical companies seeking to sell general medicine in Nepal.
The Indian government had raised the issue of ban on entry of new pharmaceutical companies to Nepal during bilateral meeting held in December 5-6 in New Delhi while Nepalese producers complained India has not allowed any Nepalese pharmaceutical products to enter the Indian market.
They said Nepalese companies are able to produce most general medicines supplied by Indian companies.
"More than 68 percent of Nepalese drug market is controlled by Indian products. But, India does not give entry to any Nepali products," Hari Bhakta Sharma, executive director of Deurali Janta Pharmaceuticals Pvt. Ltd., said.
He said if the government allowed new foreign companies, the domestic pharmaceutical companies will collapse. He said Nepalese drugs are more reliable than those manufactured by Indian companies.
DDA, which is also a national regulatory body for drugs, however, has allowed manufacturers from USA, Canada, European Union, Australia and New Zealand to register their companies and supply drugs in Nepal. DDA said compliance to Good Manufacturing Practice as recommended by World Health Organization (WHO GMP) is the minimum requirement for applying for registration.
DDA said it has stopped new registration of Indian companies in particular to check unfair competition between pharmaceutical companies. The office said medicine imported by already registered foreign companies and output of Nepal-based companies is sufficient for the current Nepalese market. Forty-four pharmaceutical companies are manufacturing drugs in Nepal. More than 250 foreign companies registered before 2007 are also supplying drugs to the country.
“Due to rampant entry of foreign drug companies, we have found multiple instances of unfair practices,” said Shyam Adhikari, a drug inspector at DDA.
He said such unethical practices directly affect poor patients. “Foreign companies provide more bonus and incentive to pharmacists and they try their best to influence doctors´ prescriptions,” he added. Adhikari said domestic companies are compelled towards unfair competition.
“We have taken a decision to promote domestic industries,” senior pharmacist at DDA Pan Bahadur Kshetri said, adding, “No new Indian company can supply general medicine in Nepal.” Kshetri said among the registered foreign companies, most are Indian.
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