No 'Non-compete' clause in pharma M&As except in special cases

The government has decided against a blanket ban on the incorporation of a ‘non-compete’ clause if an Indian pharma company is acquired by a foreign drug company. The ban was mooted by the Department of Industrial Promotion & Policy (DIPP) as a safeguard to ensure acquisition of Indian pharma companies does not lead to shortage of critical drugs. The government has decided to take up the issue on a case-by-case basis.