The Hindu Business Line : Forum for cap on margins of non-branded generic drugs

Medicine group: The Minister for Chemicals, Fertilisers and Steel, Mr Ram Vilas Paswan, and the Minister of State for Chemicals and Fertilisers, Mr B.K. Handique, at the meeting in the Capital on Wednesday. —

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New Delhi, April 23 In a bid to bring down drug price further, the Pharmaceutical Advisory Forum has proposed a cap on margins of non-branded generic drugs.

There is no such cap at present on the non-branded generic drugs (sold under chemical names such as cetrizene, omeprazole and nimusulide) which constitute about 8 per cent of the Rs 30,000-crore Indian pharmaceutical market. Some of these drugs are sold at 1000 per cent margins at present.

The Ministry of Chemicals and Fertilisers has also constituted a working group on branded-generic drugs which will submit its report in next meeting of the advisory forum.

Entry prices

Briefing the media after the meeting, Mr Ram Vilas Paswan, Minister of Chemicals and Fertilisers, said that during the next meeting, discussion would be focused on entry prices of new drugs including imported formulations and marketing expenditure by the pharmaceutical companies.

The meeting of the Pharmaceutical Advisory Forum, comprising representatives from the National Pharmaceutical Pricing Authority (NPPA), consumer organisations and State drug controllers, today proposed fixing of margins of non-branded generic drugs at 400 per cent of the maximum allowable post manufacturing expenses (MAPE).

“We have asked the Department of Chemicals and Fertilisers to study the implementation part of this suggestion given by the Pharmaceutical Advisory Forum and to work on the guidelines,” Mr Paswan said.

On the working group on branded drugs, Mr Paswan said, “A study conducted by NPPA has shown that some of the branded generic drugs in the country are sold at very high prices making it unaffordable to poor people.”

Mr Paswan also announced that the NPPA will start a 24-hour call centre with the toll-free number shortly for registering complaints on medicine prices.

The call centre will also give a status to the caller on the complaints lodged by them.

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