The Hindu Business Line : Draft policy aims to bring down drug prices

The Government on Saturday announced the draft National Pharmaceutical Policy at a meeting of the Parliamentary Consultative Committee. The policy draft aims to bring down the prices of medicines by including 354 specified drugs in addition to the already existing 74 drugs under the list of essential medicines.

The Union Minister for Chemicals and Fertilisers, Mr Ram Vilas Paswan, said, "The Government will make drugs available to the poor, especially BPL (below poverty line) families." According to the proposed policy, the 354 drugs, which have also been included in addition to the 74 drugs and their formulations, have specified strengths as mentioned in the National List of Essential Medicines.

To increase MAPE

Mr Paswan said it had been proposed to increase the maximum allowable post-manufacturing expense (MAPE), from the current 100 per cent to 150 per cent. In a bid to give incentive to R&D in the pharmaceutical sector, the policy also proposed giving an additional 50 per cent MAPE for R&D-intensive companies.

The Minister, however, said that for the existing 74 drugs, whose prices were under control, MAPE would continue to remain at 100 per cent for another year in order to avoid sudden increase in prices. The MAPE would be increased thereafter. He also said the trade margins on generic drugs would be fixed at 15 per cent for wholesalers and 35 per cent for retailers.

Reiterating the Government's commitment to provide affordable medicines as charted out in its Common Minimum Programme, Mr Paswan, said drug prices would be fixed for all drugs in the cost plus price control system based on the given percentage of MAPE. He further added that the ceiling prices would also be fixed wherever possible.

The draft policy has been circulated to all departments for comments.

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