The Hindu Business Line : Drugs patented abroad: Panel to evolve negotiated pricing formula

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New Delhi Feb. 9 In order to ensure that drugs patented abroad remain affordable as and when the multinational companies introduce them in India, the Government has set up a seven-member committee to evolve a methodology for price negotiation of these drugs.

The committee has been mandated to propose a system of reference pricing and differential prices based on which price negotiations would be conducted not only for drugs patented abroad and not in India but also for medical devices patented abroad before they are marketed by multinational companies in India.

Without negotiated pricing, these drugs would not be given marketing rights in India, sources said.

The move has been initiated to remain prepared for the introduction of the National Pharma Policy, which is currently with the Group of Ministers headed by the Minister for Consumer Affairs, Mr Sharad Pawar.

While the pharma policy mainly deals with the 354 essential medicines, the provision for negotiated prices for patented drugs had also been incorporated in the draft.

Lobbying hard

A host of multinational companies are in the process of introducing various patented drugs into the Indian market following the amendment of the Patent Act with effect from January 2005. These companies are lobbying hard with various Government agencies to ensure that no restrictions are imposed on the pricing of patented drugs.

Earlier, Mr Hank McKinnel, Chairman of Pfizer, the world's largest pharmaceutical company, had met the Prime Minister, Dr Manmohan Singh, on the proposed Government move to regulate prices of patented drugs. Mr McKinnel had also taken up the issue with the Minister for Chemicals and Petrochemicals, Mr Ram Vilas Paswan, and the Commerce and Industry Minister, Mr Kamal Nath, on the same issue.

The Government has mandated this new committee to interact with various pharma industry associations, study materials available on this issue and to submit its report within three months ending April 2007, sources said.

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