INDIA'S top court told billionaire tycoon Anil Ambani today (20) that he must pay his debts to Sweden's Ericsson or go to jail, the latest twist in a saga that forced his telecom company to file for bankruptcy.
Ambani's debt-laden Reliance Communications is some $4 billion in debt after a brutal telecom price war that pitched him against his brother Mukesh, India's richest man and gripped the country's business community.
Judges found Anil Ambani, 59, had refused to pay telecom giant Ericsson Rs 5.5bn ($77 million) as previously ordered by the Supreme Court.
They ruled the billionaire will be jailed for three months if Rs 4.5bn are not stumped up within four weeks.
Ambani's firm said it will comply with the ruling and pay the debt. Some Rs 1.0bn have already been deposited with the court, which said the sum will be handed to Ericsson.
Earlier this year, Reliance Communications said it had decided to start insolvency proceedings after failing to sell assets to pay back lenders.
The dispute started when Ericsson sought to recoup Rs 16bn from Reliance Communications. They reached a settlement last May, but the Indian company failed to meet the payment deadlines.
Ambani had hoped to avoid insolvency proceedings by offloading his company's telecom tower and spectrum business to his brother's business Reliance Jio for $2.4bn, but the deal hit regulatory hurdles and opposition from creditors.
Reliance Communications faces liquidation if it is unable to pay back its debts by November.
UK life sciences sector contributed £17.6bn GVA in 2021 and supports 126,000 high-skilled jobs.
Inward life sciences FDI fell by 58 per cent from £1,897m in 2021 to £795m in 2023.
Experts warn NHS underinvestment and NICE pricing rules are deterring innovation and patient access.
Investment gap
Britain is seeking to attract new pharmaceutical investment as part of its plan to strengthen the life sciences sector, Chancellor Rachel Reeves said during meetings in Washington this week. “We do need to make sure that we are an attractive place for pharmaceuticals, and that includes on pricing, but in return for that, we want to see more investment flow to Britain,” Reeves told reporters.
Recent ABPI report, ‘Creating the conditions for investment and growth’, The UK’s pharmaceutical industry is integral to both the country’s health and growth missions, contributing £17.6 billion in direct gross value added (GVA) annually and supporting 126,000 high-skilled jobs across the nation. It also invests more in research and development (R&D) than any other sector. Yet inward life sciences foreign direct investment (FDI) fell by 58per cent, from £1,897 million in 2021 to £795 million in 2023, while pharmaceutical R&D investment in the UK lagged behind global growth trends, costing an estimated £1.3 billion in lost investment in 2023 alone.
Richard Torbett, ABPI Chief Executive, noted “The UK can lead globally in medicines and vaccines, unlocking billions in R&D investment and improving patient access but only if barriers are removed and innovation rewarded.”
The UK invests just 9% of healthcare spending in medicines, compared with 17% in Spain, and only 37% of new medicines are made fully available for their licensed indications, compared to 90% in Germany.
Expert reviews
Shailesh Solanki, executive editor of Pharmacy Business, pointed that “The government’s own review shows the sector is underfunded by about £2 billion per year. To make transformation a reality, this gap must be closed with clear plans for investment in people, premises and technology.”
The National Institute for Health and Care Excellence (NICE) cost-effectiveness threshold £20,000 to £30,000 per Quality-Adjusted Life Year (QALY) — has remained unchanged for over two decades, delaying or deterring new medicine launches. Raising it is viewed as vital to attracting foreign investment, expanding patient access, and maintaining the UK’s global standing in life sciences.
Guy Oliver, General Manager for Bristol Myers Squibb UK and Ireland, noted that " the current VPAG rate is leaving UK patients behind other countries, forcing cuts to NHS partnerships, clinical trials, and workforce despite government growth ambitions".
Reeves’ push for reform, supported by the ABPI’s Competitiveness Framework, underlines Britain’s intent to stay a leading hub for pharmaceutical innovation while ensuring NHS patients will gain faster access to new treatments.
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