In what could be a shot in the arm for
government, the domestic pharma industry has endorsed price regulation model as
suggested in the draft policy, subject to certain exemptions for indigenous
research drugs.
Recently, the department of pharmaceuticals had proposed price control on all 348 essential medicines (National list of essential medicines) through a market-based pricing mechanism. Though initially reports suggested the industry was unhappy with the scope of price control being extended from the existing 74 drugs, it may not oppose it now. However, the MNC-led body OPPI has already made its concerns public by intervening in the ongoing drug pricing issue in the Supreme Court. The government will finalise the policy after receiving comments of all stakeholders.
Apex body, Indian Pharmaceutical Alliance (IPA), which represents the domestic industry, has said in a note to the government, the 12th Plan allocation for medicines will provide a growth opportunity, which will to some extent, minimize the losses due to the policy impact. The IPA estimates that price reduction alone will result in a revenue loss of around Rs 3,000 crore to the industry). The IPA expects government procurement of medicines which is done at discounted rates, to go up by six to seven times in the 12th Plan. This will provide a huge incremental growth to the industry, IPA secretary-general DG Shah told TOI.
The only reservation it has was on the span of control. The apex industry body feels the government should extend price control to only the NLEM, and not go beyond it. The draft policy proposes to add 1,154 drugs and 6,441 formulations, raising the span of control to 75% of the retail market.
Moreover, enlarging the list without the rationale of health policy could also defeat the objectives of NLEM 2011 of promoting rational use of medicines, and will end up legitimizing even irrational combinations.
To promote innovation, the industry has suggested exempting from price control --indigenous research products patented in India for a period of 10 years, as well as novel drug delivery system (NDDS) products, for 10 years and seven years respectively, from marketing approval. The IPA has lauded the government's efforts in exempting bulk drugs from the ambit of price control. Today, about 70% of industry depends on bulk drugs and intermediates from China. By keeping them out of price control, will encourage investment in local production of bulk drugs, and thereby reduce reliance on imports.
Recently, the department of pharmaceuticals had proposed price control on all 348 essential medicines (National list of essential medicines) through a market-based pricing mechanism. Though initially reports suggested the industry was unhappy with the scope of price control being extended from the existing 74 drugs, it may not oppose it now. However, the MNC-led body OPPI has already made its concerns public by intervening in the ongoing drug pricing issue in the Supreme Court. The government will finalise the policy after receiving comments of all stakeholders.
Apex body, Indian Pharmaceutical Alliance (IPA), which represents the domestic industry, has said in a note to the government, the 12th Plan allocation for medicines will provide a growth opportunity, which will to some extent, minimize the losses due to the policy impact. The IPA estimates that price reduction alone will result in a revenue loss of around Rs 3,000 crore to the industry). The IPA expects government procurement of medicines which is done at discounted rates, to go up by six to seven times in the 12th Plan. This will provide a huge incremental growth to the industry, IPA secretary-general DG Shah told TOI.
The only reservation it has was on the span of control. The apex industry body feels the government should extend price control to only the NLEM, and not go beyond it. The draft policy proposes to add 1,154 drugs and 6,441 formulations, raising the span of control to 75% of the retail market.
Moreover, enlarging the list without the rationale of health policy could also defeat the objectives of NLEM 2011 of promoting rational use of medicines, and will end up legitimizing even irrational combinations.
To promote innovation, the industry has suggested exempting from price control --indigenous research products patented in India for a period of 10 years, as well as novel drug delivery system (NDDS) products, for 10 years and seven years respectively, from marketing approval. The IPA has lauded the government's efforts in exempting bulk drugs from the ambit of price control. Today, about 70% of industry depends on bulk drugs and intermediates from China. By keeping them out of price control, will encourage investment in local production of bulk drugs, and thereby reduce reliance on imports.
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