BUDGET IMPACT: PHARMACEUTICAL SECTOR
Article Abstract:
The budget of the Government of India for 1999-2000 has offered 125 percent exemption for in-house research and development (R&D) to pharmaceutical companies. It has been extended from March 2000 to March 2005. The budget has allocated Rs20 crore for the Innovation Fund to encourage research and development activities. The Government plans to set up a committee to review the drug pricing policy and the research and development policy. It plans to set up a technology mission for vaccines. It has increased the automatic foreign direct investment to 74 percent. This is likely to bring in more pharmaceutical multinationals to India. The excise duty on formulations has been increased to 16 percent from 15 percent, while excise duty on bulk drugs has been reduced from 18 percent to 16 percent. The customs duty on formulations has been increased from 35 percent to 38.5 percent, while customs duty on bulk drugs has been reduced from 40 percent to 38.5 percent. It has also restored 100 percent Modvat benefit to the pharmaceuticals sector. The surcharge of 10 percent on corporate tax is likely to affect companies like Pfizer, Wyeth Lederle, Novartis and Cipla. It has also decided to introduce exclusive marketing rights, which would benefit Pfizer. (rk) (kvr)
Comment:
The budget of the Government of India for 1999-2000 has offered 125 percent exemption for in-house research and development (R&D) to pharmaceutical companies.
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1999
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AUROBINDO PHARMA
Article Abstract:
Aurobindo Pharma posted a net profit of Rs23.79 crore on sales of Rs295 crore in 1997-98. The company declared a 50 percent dividend in 1997-98 compared to 30 percent in 1996-97. It declared a 1:1 bonus issue as its reserves improved to Rs64.87 crore on a paid up equity of Rs4725 crore. The company, which has emerged as the country's largest semi synthetic penicillin products manufacturer, has set up subsidiary companies in the US with an investment of $200,000 and in Hong Kong at a cost of $150,000. (khr)
Publication Name: Dalal Street Journal
Subject: Business, international
ISSN:
Year: 1998
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