Srinivasan says he understands why Pfizer is furious. But the argument in India is that the right of sick people in developing countries to cheap medicines outweighs the right of inventors in wealthy nations to turn a profit. New Delhi aimed to bring down prices of drugs by helping boost the capabilities of the indigenous industry. The problem is that since Indian companies make money simply by copying, that is all that many of them do. Our companies are not doing any original research.
Foreigners also balk at bringing cash and know-how to India.
Some local companies are calling for change. Hyderabad-based Dr. Reddy's Laboratories has developed about 200 new drugs and won patents in the U.S. and Europe for many of them. Where it cannot afford development and testing, Reddy's has collaborated with foreign partners. It recently linked up with Novo Nordisk of Denmark in the final development of a diabetes drug - industry sources say the deal earned Reddy's a huge sum. That will be the way to the future.