The two companies have been involved in a slug fest since August last year when Shantha Biotech launched the country's first genetically engineered Hepatitis-B vaccine under the brand name Shanvac-B and started marketing it at one-third the price of the imported vaccine sold by Smith Kline.

Considering the huge market for the product, put at Rs 1,500 crore according to some estimates, the intense competition unleashed by the multinational brands to beat the cheaper Indian brand is not surprising.

Before Shanvac-B was introduced Smith Kline's brand Energix-B used to sell for around Rs 700 per dose but has now been reduced to Rs 485 plus taxes per dose, according to market information. Compared to this Shanvac-B sells at Rs 190plus taxes per dose while the two other brands available in the market, Enivac-B and Hepavax-B, which are plasma derived unlike the other two, sell for around Rs 250 per dose.

Not surprisingly then with fresh competition certain practices started in the market which Shantha Biotech has termed unfair. So much so, it has accused Smith kline of not only carrying on a slander campaign but also resorting to "dumping" and underselling to pre-empt the success of the Swadeshi vaccine. While this was brought to the notice of the previous United Front government little has happened by way of redressal, say KI Varaprasad Reddy, managing director Shanta Biotech.

However, with the Swadeshi credentials of the BJP government, Reddy hopes the response this time round would be different though he wonders why the Sangh Parivar's Swadeshi Jagran Manch, which has taken up a campaign against multinationals, has failed to take note of his plight so far.

While its lawyers feel there are sufficient grounds for redressal underthe MRTP Act, Reddy is skeptical of taking on the multinational might in the courts of law going by past experience in such cases. However, he has made out an equally strong case for the government to take action on the alleged dumping by Smith Kline which he says is being allowed to import a duty-free vaccine while he is forced to import the biological reagents, chemical and other consumable inputs to make the vaccine by paying customs duty in the range of 37.5 per cent to 80 per cent.

Considering that despite these odds, Shantha Biotech has been able to sell a cheaper vaccine for Hepatitis-B in the country, Reddy feels there is a case for creating a level-playing field and imposing a duty on Smith Kline for importing its brand into the country.

This apart, the finance minister should also make a special dispensation for the biotechnology industry by removing the import duties on equipment and raw materials so as to nurture indigenous know-how, he feels.

"As a matter of fact, it is a helplesssitaution," says Reddy talking of the market situation. While the company itself faces the danger of closing down due to the unfair competition the irony is that Shanta Biotech itself is a creation of the department of S&T which funded the project through the Technology Development Board, he adds.

"However, for want of nurturing by the government one of its own creations faces the danger of extinction," he laments. "My mission was to make it available as cheap as possible to the common man in India to fight the dreaded virus which is several hundred times more prevalent than the HIV. But for want of patronage from the government I have had to spend on marketing the product which has added to the cost", he points out.

While this has not been possible, at least a level-playing field should be there to make the product to those who can afford it, he stresses.