Govt may relent on drug price control
Reghu Balakrishnan

Could settle for drug monitoring while giving more teeth to NPPA for handling pricing issues.

MUMBAI: The ministry of chemicals and fertilisers, which had taken up the cudgels against overpricing of drugs by bringing 354 drugs that figure in the National List of Essential Medicines under the scope of price control, seems to be slowly stepping back following mounting pressure from domestic pharmaceutical companies.

The ministry’s decision had drawn strong criticism from various quarters, including the Prime Minister’s Office.

Given all this, the Union minister for chemicals and fertilisers, Ram Vilas Paswan is said to be considering going for a drug monitoring regime rather than imposing price controls.

Sources said the plan is to afford more power to the National Pharmaceutical Pricing Authority (NPPA).

The ministry had set up a 14-member committee last month to review the Pharmaceutical Policy 2006, including the issues of drug price control.

Later, as a result of the industry’s lobbying, the committee, which had 11 representatives from the industry and three from the government, added two more industry representatives.

The industry has been arguing for drug monitoring rather than price control.

But the government is likely to strengthen the NPPA by setting up additional wings in state drug controller offices across the country.

The committee, headed by the secretary of ministry & petrochemicals, will submit its report before September 30.

Paswan himself seems to have toned down his crusade. “At present, we cannot say anything. We are awaiting the committee report. Only after studying the report can we decide our plans,” he told DNA Money.

Industry associations such as the Indian Drug Manufacturers’ Association (IDMA), Organisation of Pharmaceutical Producers of India and Indian Pharmaceutical Alliance are at the forefront of those opposed to price controls.

Dara B Patel, secretary general, IDMA, told DNA Money, “Surely, the plan to bring more drugs under price control will affect manufacturers badly. Once the manufacturers stop production of the drugs, which will be coming under price control ultimately, the patients will suffer due to the lack of essential drugs.”

There would also be a shortage of funds to be pumped into research and development if the margins shrink as a result of price control.

However, a clear picture on the policy will emerge after the next meeting between industry and the minister, which will take place soon, he said.

Drug price controls are aimed at ensuring that essential and life-saving medicines are available at reasonable prices.

A structured price control mechanism was first established in 1979 with the issuance of the first Drug Price Control Order which provided a list of price-controlled drugs, procedures for fixation of drug prices, method of implementation of prices fixed by the government and penalties for contravention of provisions.

Source: www.dnaindia.com
13th September 2006

This Site is developed and maintained by Prashant H. Pandya
Site updated on Thursday, September 14, 2006 10:16 PM
© Confederation of Indian Pharmaceutical Industry (ssi)