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Issue 21
9th
November 2009
C&I Magazine
Battle over drug export licences
Vidya Krishnan,
09/11/2009
The turf war between the Indian
health ministry and office of the drug
controller general of India (DCGI)
rages on after the health ministry ‘put
on hold’ the directives issued by the
DCGI withdrawing powers from state
governments to issue Certificates
of Pharmaceutical Products (CoPP)
– the export quality licence drug
manufacturers require to sell their
drugs to overseas buyers.
While DCGI Surinder Singh has
stated that he took the decision to
uphold the image of the country,
particularly as India’s pharmaceutical
exports are increasing rapidly,
the health ministry has expressed
concerns over centralising the
process of awarding CoPP and
Good Manufacturing Practice (GMP)
certificates. ‘We have put the matter
on hold. The health ministry has not
approved that proposal yet,’ said
Sujatha Rao, union health secretary in
India’s Ministry of Health and Family
Welfare.
Meanwhile, confusion prevails
as the zonal offices of the Central
Drugs Standard Control Organization
(CDSCO) are awarding GMP and CoPP
certificates for the time being.
According to Singh, the decision
to centralise the awarding of CoPPs
was taken after the World Health
Organization (WHO), in a letter sent in
April 2009, objected to the use of
its name and logo on the certificate.
In the letter, the WHO said that CoPPs
should be issued by the National
Regulatory Authority of the producing
country based on certain guidelines
laid down by the WHO. It also pointed
out instances in which these guidelines
or formats had not been followed in
India when issuing CoPPs.
Last year, the US Food and Drug
Administration (FDA) issued warning
letters and import alerts on Ranbaxy
Laboratories for deviations from GMP
after it audited the firm’s plants at
Paonta Sahib in Himachal Pradesh
and Dewas in Madhya Pradesh.
Besides the health ministry, the
high courts in the states of Karnataka
and Madras have already issued
injunctions halting the DCGI’s order.
In his defence, the DCGI maintains
that the orders were intended to
streamline licensing practices in the
country. ‘It is important that the
certificates should be awarded by a
central authority,’ Singh says. ‘Our
decision is aimed at strengthening
the regulatory framework in India
and instilling confidence in the
world to trade with India.’ India’s
pharmaceutical exports in the first
two months of the year were worth
Rs380bn (€5.47bn), a 30% increase
over the previous fiscal year.