API: Incentives scheme on cards to give impetus to API manufacturing - (The Economic Times via NewsPoints Desk)

  • According to people familiar with the matter, India's Department of Pharmaceuticals is working with think tank Niti Aayog on an incentive scheme to boost domestic manufacturing of active pharmaceutical ingredients (APIs) as it fears supply issues due to the COVID-19 outbreak, reported The Economic Times.

  • According to the proposal, a corpus fund of Rs 3000 crore will be set up for pharmaceutical companies who are ready to invest in API and fermentation units in India.

  • A senior executive said the move will only benefit larger drugmakers. "By making it mandatory for a pharma company to shell out around 500 crore, the government is actually leaving out medium and small enterprises from the benefits of the scheme," the executive said.

  • On Tuesday, India restricted the export of about 26 APIs and formulations including antibiotics, vitamins and hormones.

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